RAILROAD -AND  THE  FARMi 


5?) 


V. 

O 


Nos.  ONE  p.nd  TWO. 


By  Hon.  EDWARD  ATKINSON,  of  Boston,  Mass. 

; A. 

n 


AND 


THESTANIRD  OF /DEQUATE  [[AILROAD  SERVICE 


BY  THE  SAME  AUTHOR. 


The  puz’pose  of  this  Journal,  as  representing  the  American  Agricultural  Association,  is  to  disseminate 
the  best  attainable  information  on  the  subjects  of  most  importance  to  the  farmer.  It  can  perform  no 
greater  service  to  its  readers  than  by  publishing  papere  which,  like  this  one  by  Edward  Atkinson,  are  at 
once  clear,  profoimd,  full  of  purpose,  and  absolutely  reliable  in  their  statements.  And  as  to  this  particu- 
lar paper,  we  must  say  that  in  our  opinion  a just  appreciation  of  its  character  and  intent  is  of  far  more 
importance  to  the  farmers  than  it  is  to  the  railroads.— i'ditoria?.  Journal  American  Agricultural  Associa- 
tion, Vol.  1,  Nos.  3 and  4. 


% 

COPYRIGHT  1883. 


From  the  Agricultural  Review  and  Journal  of  the  American 
Agricultural  Association. 

Jos.  H.  Rfai.l,  Editor  and  Publisher, 

' 32  Park  Row,  New  York. 

Western  Office,  142  Dearborn  St.,  Chicago,  Illinois. 


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THE  RAILROJID  AND  THE 


II. 


Nos.  ONE  and  TWO. 


By  Hon.  EDWARD  ATKINSON,  of  Boston,  Mass. 


AND 


THE  STANDARD  OF /DEQUATE  RAILROAD  SERVICE 


BY  THE  SAME  AUTHOR. 


” The  pui-pose  of  this  Jovekai,  as  representing  the  American  Agricultural  Association,  is  tb  disseminate 
the  best  attainable  information  on  thegsubjects  of  most  importance  to  the  farmer.  It  can  perform  no 
greater  service  to  its  readers  than  by  publishing  papers  which,  like  this  one  by  Edward  Atkinson,  are  at 
once  clear,  profound,  full  of  pmpose,  and  absolutely  reliable  in  their  statements.  And  as  to  this  particu- 
lar paper,  we  must  say  that  in  cur  opinion  a just  appreciation  of  its  character  and  intent  is  of  far  more 
importance  to  the  farmers  than  jt  is  to  the  railroads. — Editorial,  Journal  American  Agricultural  Associa- 
tion, Vol.  1,  Nos.  3 and  4. 


COPYRIGHT  1883. 


From  the  Agricultural  Review  and  Journal  of  the  American 
Agricultural  Association. 

Jos.  H.  Reall,  Editor  and  Publisher, 

32  Park  Row,  New  York. 
Western  Office,  142  Dearborn  St.,  Chicago,  Illinois. 


gricultural  Revi 


AND  JOURNAL  OF  THE 


American  Agricultural  Association 


PUBLISHED  MONTHLY. 


The  Aokicultukal  Review  is  a magazine  pronouncsd  by  the  highest 
nthofities  the  most  valuable  jmblication  issued  in  connection  with  Agii- 
ulture  and  practical  matters.  Its  contributors  comprise  some  of 
he  ablest  scientific  and  practical  writers  in  America  and  Europe,  inchid- 
ng  Hon.  Edward  Atkinson  ; Sir  J.  B.  Lawes,  E.R.S.,  of  England;  Rear- 
dmiral  Daniel  Ammen,  IT.  S.  Havy;  Francis  D.  Moulton,  New  York  ; 
rof.  J.  P.  Sheldon,  of  England  ; Gen.  W.  W.  Burns;  Hon.  Cassius  M. 
day;  Dr.  Peter  Collier;  Dr.  Byron  D.  Halsted  ; Dr.  E.  Lewis  Stiirte- 
ant ; Prof.  James  Law  ; Dr.  John  A.  Warder  ; Prof.  J.  P.  Stelle  ; Prof. 
..  C.  Kedzie;  Prof.  E.  W.  FJilgard;  Prof.  W.  O.  Atwater;  Prof.  J.  M. 
cBryde ; and  others. 

The  Agricultural  Revieav  is  the  organ  of  the  American  Agricul- 
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JOS.  H.  REALL,  Editor  and  Publisher, 

32  PARK  ROW,  NEW  YORK. 

ESTERN  Office  : — 142  Dearborn  St.,  Chicago,  111./ 


THE  RAILROJID  AND  THE  FARMEIi, 


Nos.  ONE  and  TWO. 


By  Hon.  EDWARD  ATKINSON,  of  Boston,  Mass. 


AND 


THE  STANDARD  OF /DEQUATE  IjAlLROAD  SERVICE 

BY  THE  SAME  AUTHOR. 


” The  purpose  of  this  Journai,  as  representing  the  American  Agricultural  Association,  is  tt)  disseminate 
the  best  attainable  information  on  the£subjects  of  most  importance  to  the  farmer.  It  can  perform  no 
greater  service  to  its  readers  than  by  publishing  papers  which,  like  this  one  by  Edward  Atkinson,  are  at 
once  clear,  profotmd,  full  of  pmpose,  and  absolutely  reliable  in  their  statements.  And  as  to  this  particu- 
lar paper,  we  must  say  that  in  cur  opinion  a just  appreciation  of  its  character  and  intent  is  of  far  more 
importance  to  the  farmers  than  ;t  is  to  the  railroads.— A'd^fonaZ,  Journal  American  Agricultural  Associa- 
tion, Vol.  1,  Nos.  3 and  4. 


COPYRIGHT  1883. 


From  the  Agricultural  Review  and  Journal  of  the  American 
Agricultural  Association. 

Jos.  H.  Reall,  Editor  and  Publisher, 

32  Park  Row,  New  York. 

Western  Office,  142  Dearborn  St.,  Chicago,  Illinois. 


M 


THK  RAILROAD  AND  THE  FARMER, 


By  EDWARD  ATKINSON,  Boston,  Mass. 


The  close  relation  existing  between  these  two  great  factors  in  society  can  be  made 
evident  in  the  most  striking  manner  only  by  an  appeal  to  the  eye. 

Since  the  end  of  the  civil  war  in  this  country  our  railway  mileage  has  increased 
from  34,000  to  94,000  miles.  The  figures  in  the  following  diagram  show  the  miles  of 
railroad  in  operation  on  the  1st  January  in  each  year,  and  the  black  lines  show  the 
proportionate  increase.  Railroad  begets  railroad,  and  where  we  had  one  mile  before 
slavery  ended  we  now  have  three. 

Miles  op  Railroad  in  Operation  on  the  1st  January  in  each  Year  and  the 
Miles  Added  in  the  Year  Ensuing. 


1865 

33,908 

1,177  • 

■ 

1866 

35,085 

1,716 

■ 

1867 

36,801 

2,449 

■ 

1868 

39,250 

2,979 

■ 

1869 

42,229 

4,615 

1870 

46,844 

6,070 

1871 

. 52,914 

7,379 

1872 

60,293 

5,878 

1873 

66,171 

4,107 

ma 

1874 

70,278 

2,105 

m 

1875 

72,383 

1,713 

■ 

1876 

74,096 

2,712 

■ 

1877 

76,808 

2,281 

■ 

1878 

79,089 

2,687 

■ 

1879 

81,776 

4,721 

1880 

86,497 

Est’d  7,508 

1881 

94,000 

rhe  construction  of  1881  will  probably  exceed  that  of  any  preceding  year. 

During  the  same  period  the  grain  crops  of  the  country  have  increased  in  the  pro- 


By  Edward  Atkinson. 


3 


SAj 


ru. 


portions  pictured  in  the  next  diagram,  the  figures  on  the  left  showing  the  number  of 
bushels  of  maize,  wheat,  oats,  rye,  barley  and  buckwheat  produced  in  each  year.  It 
will  be  observed  that  the  curve  of  the  increase  of  crops  follows  substantially  the  curve 
of  the  increase  of  railway  mileage,  proving  the  mutual  relation  of  each  to  the  other. 


Grain  Crops  of  the  United  States. 


Teab. 

Bushels. 

Maizie,  Wheat,  Rye,  Oats,  Barley,  Buckwheat. 

1865 

1 127  4QQ  187 

1866 

1,343,027,868 

1867 

1,329,729,400 

1868 

1 dfirt  78Q  (Yin 

1869 

1 4Q1  412  1 no 

1870 

1,629,027,600 

1871 

1 528  776  1 00 

1872 

1 fiftd  ^1  fifkl 

, 

1873 

A 1 , OO 1 , UVU 

1,538,892,891 

”**'^^*** 

1874 

1,455,180,200 

■uudhtiuUiIJ 

1875 

2,032,235,300 

1876 

1,962,821,600 

1877 

2,178,934,646 

1878 

2.302,254,950 

1879 

2,434,884,541 

1880 

2,448,079,181 

Authority  : Dept,  of  Agriculture,  U.  S. 


The  production  or  leading  forth  of  the  fruits  of  the  earth  consists  of  three  inter- 
dependent movements ; first,  stirring  the  soil,  planting  the  seed  and  reaping  the  har- 
vest — carried  on  by  the  engines  known  as  plows,  planters,  reapers  and  the  like  ? 
second,  the  movement  of  the  grain,  and  its  subdivision  by  means  of  the  stationary 
engines  known  as  elevators  and  flour  mills  ; third,  the  movement  of  the  food  by  means 
of  the  locomotive  engine  or  the  steamship  to  the  point  nearest  its  place  of  final  con- 
version or  consumption. 

Each  part  of  the  work  depends  absolutely  upon  the  other,  and  the  common  condi- 
tion of  success  is  in  ratio  to  the  removal  of  obstructions  to  all  these  movements.  The* 
farmer  is  free  to  plant  and  free  to  reap  ; the  miller  is  free  to  grind  and  free  to  sell  his 
service  ; the  owner  of  the  elevator  is  free  to  use  the  vertical  railway  on  which  he  trans- 


4 


The  Railroad  and  the  Farmer. 


fers  the  grain  from  the  farmer’s  wagon  or  from  the  canal  boat  to  the  bin  that  is  to 
hold  it  for  a time  ; but  the  manager  of  the  horizontal  railway  may  not  move  his  loco- 
motive engine  without  being  threatened  with  the  obstruction  of  meddlesome  statutes 
imposed  by  Congresses  and  Legislatures  in  which  there  may  not  be  a single  man  who 
could  himself  conduct  with  success  the  complex  work  even  of  a hundred  miles  of 
railway. 

The  world— especially  the  legislative  world— is  slow  to  perceive  that  all  interests 
are  harmonious.  If  the  wheat-grower  does  not  prosper,  no  grist  will  come  to  the  mill ; 
if  the  miller  does  not  obtain  an  adequate  toll,  the  traffic  of  the  railway  will  cease  ; if 
the  dealer  cannot  obtain  his  profit,  neither  the  bags  of  grain  or  the  barrels  of  fiour  will 
be  moved  from  the  station  where  they  have  been  discharged  ; if  the  consumer,  per- 
haps in  some  far  distant  land,  can  obtain  his  food  with  less  labor  than  he  must  exert 
to  obtain  the  means  of  purchase  with  which  to  buy  the  grain,  the  whole  movement 
will  cease. 

Like  some  of  the  new  processes  in  grinding,  by  which  the  attrition  of  the  particles 
of  grain  upon  each  other  works  the  best  results,  so  in  the  distribution,  the  attrition  of 
each  apparently  conflicting  interest  with  the  other  defines  the  service  that  each  has 
rendered,  and  thus  all  are  saved  from  the  arduous  drudgery  that  still  retards  human 
progress  in  the  places  that  the  beneficent  service  of  commerce  does  not  reach. 

Commerce,  or  the  exchange  of  services  among  men,  promotes  abundance  ; if  ob- 
structions are  placed  in  the  way,  it  matters  not  where,  all  alike  suffer.  The  railroad 
removes  the  obstructions  of  time  and  distance.  Statutes  have  been  required  to  enable 
men  to  combine  for  their  construction  ; in  order  that  the  utmost  freedom  should  be 
given  even  general  acts  have  been  passed.  It  is  now  proposed  to  reverse  the  acts  that 
have  enabled  railroads  to  be  built,  and  by  other  statutes  to  obstruct  their  use. 

If  we  desire  to  know  what  class  has  reaped  the  greatest  benefit  in  this  free  and  vast 
progress  of  our  railroad  system  another  appeal  may  be  made  to  the  eye. 

Chicago  being  the  great  market  of  the  world  for  grain  and  meat,  what  has  been  the 
cost  of  moving  these  staples  to  the  principal  port  of  export.  New  York  ? The  follow- 
ing tables  give  the  increase  of  tonnage,  and  the  decrease  in  the  charge  upon  one  of 
the  great  lines  that  unite  the  two  cities. 

This  line  has  been  selected  for  the  purpose  of  comparison,  because  it  has  not  only 
performed  the  greatest  service  to  the  community,  but  also  because  it  has  been  very 
profitable  to  its  owners.  Its  traffic  also  consists  mainly  of  products  of  agriculture  and 
general  merchandise,  and  very  little  of  coal. 

The  Lake  Shore  and  New  York  Central  Line  has  also  been  taken  as  an  example, 
because  the  line  has  remained  substantially  the  same  from  1869  to  1880,  while  other 
lines  have  greatly  extended  their  mileage.  The  same  rule  may,  however,  be  estab- 
lished if  the  same  comparison  be  made  of  the  traffic  of  the  Pennsylvania  Railroad,  the 
Erie,  or  the  Baltimore  and  Ohio  lines.  The  same  relative  reductions  may  also  be 
proved  from  the  accounts  of  all  the  great  lines  in  the  West,  if  the  comparison  be  made 
on  the  main  sections  between  principal  points  that  were  in  operation  at  the  two 
respective  dates. 

Between  1869  and  1879  the  traffic  of  the  Boston  & Albany  Railroad  increased  105 
per  cent.,  the  charge  per  ton  decreased  54^  per  cent.,  and  the  earnings  decreased  7 per 
oent. 

Between  1872,  the  year  before  the  panic,  and  1879,  the  traffic  of  the  Pennsylvania 
Railroad  increased  80  per  cent.,  the  charge  per  ton  decreased  43  per  cent.,  and  the 
•earnings  increased  less  than  3 per  cent. 

The  graphical  tables  showing  these  reductions  are  not  repeated,  because  one  ex- 
«-niple  will  suffice. 


By  Edward  Atkinson. 


5 


Lake  Shore  & Michigan  Southern  Railroad.— AchtaZ  Tons  Moved. 


Year. 

Miles. 

Tons  Moved. 

Increase  of  Tons  Moved,  Measured  by  Ratio  of  Lines. 

1869 

Consolidated  in  this  year. 

1870 

1,013 

2,978,725 

1871 

1,073 

3,784,525 

1872 

1,136 

2,443,092 

1873 

1,154 

5,176,661 

1874 

1,175 

5,221,267 

1875 

1,176 

5,022,490 

1876 

1,177 

5,635,167 

1877 

1,177 

5,513,398 

1878 

1,178 

6,098,445 

1879 

1,178 

7,541,294 

1 

Lake  Shore  & Michigan  Southern. — Tons  Moved  One  Mile. 


Year. 

Tons  Moved  One  Mile. 

Increase  op  Traffic,  Tons  per  Milk. 

1870 

574,035,571 

1871 

733,670,696 

II  mm 

1872 

924,840,140 

1873 

1,053,297,189 

1874 

999,342,041 

1875 

943,230,161 

1876 

1,133,824,828 

1877 

1,080,005,561 

1878 

1,340,467,826 

1879 

1,733,423,440 

Lake  Shore  & Michigan  Southern.— C/iargre  Per  Ton  Per  Mile, 

Average  upon  all  Classes  of  Merchandise. 


The  Railroad  and  the  Farmer. 


New  York  Central  & Hudson  River  Railroad. — Actual  Tons  Moved. 


1869 

842 

3,190,840 

1870 

842 

4,122,000 

1871 

844 

4,532,056 

1872 

850 

4,393,905 

1873 

858 

5,522,724 

1874 

1,000 

6,114,678 

1875 

1,000 

6,001,984 

1876 

1,000 

6,803,680 

1877 

1,000 

6,357,356 

1878 

1,018 

8,175,535 

1879 

1,018 

9,441,213 

New  York  Central  & Hudson  River  Railroad. — Tons  Moved  One  Mile. 


1869 

589,362,849 

SHBOBSa 

1870 

769,087,777 

1871 

588,327,865 

HEDHBBHI 

1872 

1,020,908,885 

hbbbhbhhhi 

1873 

1,246,650,063 

tmaBmaammsamamm 

1874 

1,391,560,707 

1875 

1,404,008,029 

1876 

1,674,447,135 

1877 

1,619,948,685 

1878 

Too, 104 

2,295,827,387 

1879 

New  York  Central  & Hudson  River  Railroad. — Charge  Per  Ton  Per  Mile. 

Average  on  all  Classes  of  Merchandise. 


Year. 

Receipts. 

Charge. 

Decrease  op  Charge. 

1869 

$ 

14,066,386 

Cents. 

2.38 

1870 

14,489,217 

1.88 

1871 

14,647,580 

16,259,647 

2.49 

1872 

1.59 

mmmaaam  1 

1873 

19,616,018 

1.57 

mmkimmmfm  I 

1874 

20,348,725 

1.46 

1875 

17,899,707 

1.27 

■■■■Dm 

1876 

17,593,265 

1.05 

mmamam 

1877 

16,424,317 

1.02 

mmmmm 

1878 

19,(M5,8.30 

.93 

mmmmm 

1879 

18,270,250 

.79 

COMPAHISON  OF  RESULTS. 


Traflac  increased 
289  percent. 

Decrease  charge  per  toa 

67  per  cent. 

Earnings  increased 
30  per  cent. 


By  Edward  Atkinson. 


7 


That  this  great  line  offers  no  exception  to  the  general  rule  will  also  be  apparent 
from  the  following  tables: 


Tons  Moved  Upon  all  the  Railroads  in  the  State  op  New  York. 


1870 

20,572,212 

1871 

22,739,447 

■BESBBBKKnBDBB 

1872 

27,427,415 

1873 

34,358,119 

1874 

33,555,595 

1874 

32,408,547 

larmnfflmriiiiiiiiiiiiiiiiii  i iiiiNiiiiiiiiiii^g™^ 

1876 

34;i63,958 

1877 

34,984,781 

1878 

38,320,573 

1879 

47,350,174 

Compiled  by  G.  R.  Blanchard. 


Recbipts,  Expenses  & Profits  of  all  the  Railroads  in  the  State  of  New  York, 
IN  Cents  per  Ton  per  Mile. 


Receipts. 

Expenses. 

Profits. 

1870 

.5545 

1.7016 

1.1471 

numi 

HH 

1871 

‘1.7005 

.5555 

1.1450 

BHHI 

HI 

1872 

1.6645 

1.1490 

.5155 

m 

1873 

1.6000 

HHBBflii 

1.0864 

.5136 

IH 

1874 

1.4480 

.9730 

HHI 

.4750 

H 

1875 

1.3039 

.9587 

.3452 

1876 

1.1604 

.8561 

HHI 

.3043 

■ 

1877 

1.0590 

mu 

.7740 

.2850 

■ 

1878 

.9994  ■ 

Hm 

.6900 

ilH 

.3094 

■ 

1879 

.808* 

IHHi 

.5847 

HI 

.2295 

■ 

Compiled  by  G.  R.  Blanchard. 


It  will  be  observed  that  the  rates  of  charge  pictured  in  these  tables  cover  all  classes 
of  merchandise,  and  that  the  charge  on  grain  and  meat  is,  customarily,  from  one-half 
to  two-thirds  the  average  rate  on  all  the  traffic ; the  less  rate  being  possible  owing  to 
the  great  distances  over  which  these  staples  are  carried. 

When  we  compare  the  steady  reduction  that  has  followed  the  consolidation  of  the 
great  lines  of  railway,  between  East  and  West  (which  are  but  examples  of  a rule  that 
has  affected  every  great  line  in  the  United  States),  with  the  prices  of  the  great  staples 
moved  upon  them,  in  the  markets  of  Chicago  or  New  York,  we  shall  see  that  the  bene- 
fit of  very  great  reduction  in  the  rate  charged  has  been  secured  by  both  producers  and 
consumers  of  the  products  moved — largely  by  producers — the  reduction  in  the  prices  of 
leading  staples  being  much  less  than  the  reduction  in  the  cost  of  transportation. 


■8 


The  Railroad  and  the  Farmer. 


By  the  kindness  of  Mr.  Joseph  Nimmo,  Jr.,  of  the  Bureau  of  Statistics,  Mr.  E.  H. 
Walker,  of  the  New  York  Produce  Exchange,  and  Messrs.  Mauger  and  Avery,  wool 
merchants,  I have  been  enabled  to  compile  a list  of  the  prices  of  staple  farm  products 
in  the  market  of  New  York  City,  from  which  I have  deduced  the  tables  given  here- 
after. 

At  the  average  price  of  the  year,  it  appears  that  in  the  year  1869  20  barrels  of  Ex- 
tra State  flour,  10  barrels  each  of  mess  beef  and  pork,  100  bushels  each  of  Milwaukee 
Club  wheat,  Western  mixed  corn  and  oats,100  lbs.  each  of  State  dairy  butter,  lard, 
and  medium  washed  clothing  wool — 9 articles  in  all — could  be  purchased  in  New  York 
City  for  the  sum  of  $845.58  in  currency.  The  average  value  of  the  paper  dollar  in 
1869  was  74.8  cents  ; the  above  sum  is,  therefore,  equal  in  gold  to  $632.68. 

In  1880  the  same  quantities  of  the  same  articles  could  be  bought  for  $631.32  in  gold, 
a variation  and  reduction  of  less  than  two  dollars  on  the  whole. 

When  we  compare  the  vast  changes  in  all  other  matters  affecting  the  exchange  of 
products,  the  stability  in  the  gold  value  of  farm  products  will  be  brought  into  sharp 
contrast. 

Between  the  1st  January,  1868,  and  the  31st  December,  1880,  the  following  changes 
occurred : 


The  railroad  mileage  increased  from  39,250  to  94,000 139  per  cent. 

The  grain  crops  increased  from  1,450,789,000  bushels  in  1868,  marketed 

in  1868-69,  to  2,448,079,181  bushels  in  1880 69  per  cent. 

The  prices  of  the  above-named  staples  decreased  in  currency  between 

1869  and  1880  263^  per  cent. 

In  gold  the  prices  were  practically  the  same. 


I am  unable  to  make  comparisons  between  the  railroad  traffic  of  1869  and  1880,  be- 
cause the  detailed  accounts  of  the  latter  year  are  not  yet  available.  I believe  the 
accounts  of  the  railroads  show  a very  small  increase  in  the  cost  and  charge  per  mile 
as  compared  with  1879,  but  the  prices  of  products  moved  increased  also. 

By  a comparison  of  the  traffic  of  1870  and  1879,  as  given  in  the  preceding  tables,  of 
the  Lake  Shore  & Michigan  Southern,  and  1869  and  1879  on  the  New  York  Central  and 
the  Hudson  River  Railroads,  it  appears  that  the  actual  tons  moved  on  these  two  sec- 
tions of  the  consolidated  line  between  Chicago  and  New  York,  increased  on  the  aver- 


age of  the  two  lines 175  per  cent. 

The  tons  moved  one  mile  increased 246  per  cent. 

The  earnings  from  freight  increased  only 29.2  per  cent. 

The  charge  per  ton  per  mile  decreased  on  the  Lake  Shore  & Michigan 

Southern 573^  per  cent. 

And  on  the  New  York  Central 67  per  cent. 


The  same  changes  have  occurred  in  substantially  the  same  degree  upon  the  Penn- 
sylvania Central,  Baltimore  & Ohio,  Chicago,  Burlington  & Quincy  railroads,  and  all 
others  that  constitute  the  alleged  monopolies.  On  the  other  hand,  all  the  short  lines, 
and  all  the  disjecta  membra  of  lines  that  ought  to  be  consolidated  aud  are  not,  show 
far  less  reduction  in  the  charge  for  their  service,  and  little  or  no  profit  to  the  corpor- 
ations that  own  them,  where  their  profits  depend  in  any  degree  on  a share  of  the 
freight  brought  from  long  distances. 

Let  us  now  compare  statistically  and  graphically  the  changes  in  the  prices  of  leading 
farm  products  and  the  decrease  in  the  cost  of  moving  them.  We  can  then  gauge  the 
effect  of  each  change  upon  our  foreign  export.  It  must  be  remembered  that  the 
average  price  of  each  product  named  in  this  table,  except  wool,  is  established  at 
what  our  excess  will  bring  for  export. 


By  Edward  Atkinson. 


S'. 


Yearly  Average  Prices  at  New  York. 


1862 

1863 

1864 

1865 

1866 

1867^ 

Yearly  average  of  gold 

113.22 

146.06 

204.05 

157.72 

141.55 

138.62 

Flour,  Extra  State 

Wheat,  Mil.  Club 

Corn,  Western  Mixed 

Oats  per  bushel 

Pork,  per  barrel.  Mess. 

Lard  per  pound.  Mess 

Butter  per  pound.  State  Dairy 

Beef,  Mess,  per  barrel. 

5.49^\ 
1.201 A 
•60f 
• 35ff 
12.3811 
•07||f 
.20 

12.59H 

6.14f| 

1.55f| 

13. 61 4 1 

• lOH 
.25 
11.79J 

8.62* 
1.974 
1.51* 
. 92f  I 
33.181 
•I'^f  1 

.444 

17.58* 

8 0544 
1 69* 
1.19* 
•'741-1 
29.211- 

.36 

13.89* 

8.934 

2.071 

.09* 

55* 

29.044 

.174 

.45 

16.31* 

10.7411 
2.41* 
1.641“ 
•'75* 
22  13* 
124f: 
31^ 
17.131-f 

1868 

1869 

1870 

1871 

1872 

1873 

Yearly  average  of  gold 

139.84 

133.70 

114.92 

111.80 

112.47 

114.05 

Flour,  Extra  State 

Wheat,  Milwaukee  Club 

Corn,  Western  Mixed 

Oats  per  bushel 

Pork,  Mess,  per  barrel 

Lard  per  pound 

Beef  per  barrel 

Butter,  State  Dairy 

9 . 13^j 
2.141 
1 . 19| 
•32* 
26.82* 
•16| 
16.19* 
.44 

6.71fi 
1 5*1 
1.01* 
•'^3* 
16.411 
.181 
11.41f 
.41 

5 55 
1.29| 
.92^ 
.581 
26.88 
. 15* 
13.93 
.31 

6.62| 

1.51f 

.76| 

.60 

16.46f 

.10* 

14.00 

.30 

7 03f 
1.58* 

48f 

13.61 

.09 

10.23 

.274 

6 90| 

1 564 
.641" 

•49* 

15.2541. 

9 6S4  - 

•33| 

1874 

1875 

1876 

1877 

1878 

1879 

1880 

Yearly  average  of  gold 

111.24 

114.90 

111.65 

104.80 

100.90 

100 

100 

Flour,  Extra  State. . . 

Wheat,  Milwaukee  Spring 

Corn,  Western  Mixed 

Oats  per  bushel,  Western  Mixed 

Pork  per  barrel.  Mess 

Beef,  Mess,  per  barrel 

Lard  per  pound 

Butter  per  pound.  State  Dairy. . . 

5.88i 

1.35 

.89 

.624 

19.16 

13.23 

.37^ 

5.37i 

1.231 

.82* 

.62i 

21.13 

11.32^ 

1Q24 

.294 

5.13f 

1.21f 

.604 

.41f 

19.63 

11.96 

.294 

6.244 

1.504 

.591 

.42 

19.76 

13.134 

.094 

.22 

4.48 
1.16f 
.491 
.321 
9 77 

11  934 

7.07 

.224 

4 50 
1.16f 
.491 

.374 

9.88 

11.324 

.061 

.184 

4.73 
1.2441 
.55* 
•42j* 
13  23 
9.48 
•07|f 

The  prices  given  are  during  the  suspension  of  specie  payments,  currency  prices. 

E.  H.  Walker, 

Statistician  of  the  New  York  Produce  Exchange. 

New  York,  Feb.  26,  1881. 


Medium  Washed  Clothing  Wool. 

Average  of  January,  April,  July  and  October  Prices, 


1869 

1870 

1871 

1872 

1873 

1874 

1875 

1876 

1877 

1878 

1879' 

1880 

43 

46M 

55 

T'OK 

55* 

54* 

51* 

44 

42* 

40* 

37* 

52* 

Mauger  & Avery’s  Report. 


10 


The  Railroad  and  the  Farmer. 


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The  above  quantities  of  produce  weigh  within  a fraction  of  13  tons  of  2,000  lbs.  each. 


By  Edward  Atkinson. 


11 


The  New  York  Central  & Hudson  Elver  Railroad  being  the  principal  target  at  which 
aU  charges  of  alleged  monopoly  have  been  aimed,  and  it  also  being  in  possession  of  the 
most  level  grade  between  Chicago  and  the  seaboard,  let  us  now  make  a comparison 
based  upon  its  charges  in  1869  and  1879  respectively,  but  we  will  apply  their  rate  to 
the  whole  distance  from  Chicago  to  Boston,  a distance  substantially  of  1,000  miles. 

It  will  be  observed  that  the  through  line  constituting  this  thousand  miles  consists 
of  the  Lake  Shore,  New  York  Central,  and  Boston  & Albany  Railroads.  The  actual 
charge  on  the  Lake  Shore  was  lower  than  on  the  Central ; but  on  the  Boston  & 
Albany  it  was  higher,  because  the  grades  are  heavier.  The  New  York  Central  rate  is  a 
fair  average  of  the  three  parts  of  this  line. 

Assuming  the  through  rate  at  the  average  charge  on  the  New  York  Central  & Hudson 
River  Railroad  the  cost  of  moving  13  tons  of  merchandise  from  Chicago  to  Boston, 
1,000  miles,  would  have  been — 


In  the  year  1869,  $309.40 

In  the  year  1879,  $102,70 


Assuming  grain  and  meat  at  three-fifths  the  average  rate  on  all  merchandise,  which 
is  a fair  approximation,  the  rates  would  have  been — 


In  the  year  1869,  $185.84  EBSSBI^BBSBOlHBSi 

In  the  year  1879,  $61.62  IBagB™i 

In  the  year  1880  we  exported  8,400,000  tons  of  grain  and  a little  over  1,000,000  tons 
of  meat  and  dairy  products.  Deducting  the  grain  of  California  and  Oregon,  the  flour 
of  Virginia  exported  to  Brazil,  and  the  dairy  product  of  the  East,  there  remained  not 
less  than  8,000,000  tons  of  grain  and  meat  gathered  from  the  prairies  of  Dakota,  Min- 
nesota, Wisconsin,  Nebraska,  Kansas,  Colorado,  Texas,  Illinois  and  Indiana.  This 
produce  centred  chiefly  in  Chicago,  and  the  average  haul  to  the  seaboard  must  have 
exceeded  1,300  miles — as  the  distance  from  Chicago  to  New  York  is  950,  to  Boston 
1,000  miles. 

The  reduction  in  the  railway  charge,  computed  in  gold,  that  has  been  made  since 
the  panic  of  1873 — that  is  to  say,  since  January  1,  1874 — as  compared  to  the  average 
charge  from  January  1,  1866,  to  January  1,  1874,  has  been  more  than  half  a cent  a ton 
a mile ; as  compared  to  the  four  years  January  1,  1866,  to  January  1,  1870,  inclusive, 
the  reduction  in  gold  has  been  fully  one  cent  a ton  a mile. 

Half  a cent  a ton  per  mile  on  8,000,000  tons  moved  1,300  miles  measures  a saving  of 

$52,000,000. 

One  cent  a ton  per  mile  on  8,000,000  tons  moved  1,300  miles  measures  a saving  of 

$104,000,000. 

The  declared  value  of  the  grain,  meat  and  dairy  products  exported  in  1880  for  the 
calendar  year  was  $389,000,000. 

The  saving  in  railway  service  at  half  a cent  a ton  constituted  13^^^  of  f^e  total 
value  ; at  one  cent  a ton  per  mile  it  constituted  26^^^  per  cent,  of  the  total  value. 

In  considering  these  changes,  it  must  be  constantly  borne  in  mind  that  they  have 
been  made  chiefly  by  the  strongest  and  most  profitable  lines  of  railroad  in  the  United 
States — the  New  York  Central,  Lake  Shore,  Michigan  Southern  and  Central,  Pennsyl- 
vania, Baltimore  and  Ohio,  Illinois  Central,  Chicago,  Burlington  and  Quincy,  and 
others  of  similar  kind. 

It  may  also  be  remembered  that  a considerable  part  of  the  reduction  in  cost  has 
been  made  possible  by  the  substitution  of  steel  for  iron  rails,  notwithstanding  the  fact 


12 


The  Railroad  and  the  Farmer. 


that  this  substitution  began  when  steel  rails  cost  about  three  times  as  much  as  they  now 
do  ; was  continued  for  a long  period  at  twice  the  present  cost ; and  the  cost  of  steel 
rails  in  this  country,  or  rather  we  should  say  the  price  of  steel  rails  to  such  railroad 
corporations  as  do  not  make  them  in  furnaces  in  which  they  are  themselves  interested, 
is  now  one  hundred  per  cent,  higher  in  this  country  than  it  is  in  Great  Britain. 

It  may  therefore  be  inferred  that  although  there  may  be  some  temporary  upward 
variations  in  the  charge  for  railway  service,  for  instance,  in  Winters  when  the  roads 
are  much  obstructed  by  snow  or  are  injured  by  freshets,  the  general  tendency  will  be 
to  steady  reduction.  This  reduction  may  hereafter  be  small  and  slow  on  the  consol- 
idated lines  east  of  Chicago,  but  must  be  rapid  and  large  on  many  of  the  Western  lines. 

On  Southern  and  South-Western  traffic,  a reduction  of  at  least  one-half  is  sure  to 
be  compassed  within  the  next  decade.  These  future  reductions  will  be  promoted  not 
only  by  the  lower  cost  of  operating,  but  also  of  building  and  extending  railroads. 

The  double  cost  of  steel  rails  in  this  country  as  compared  to  Great  Britain  may  be 
considered  in  connection  with  the  statement  of  the  probable  surplus  revenue  of  the 
United  States  that  may  be  applied  to  the  reduction  of  national  taxes,  if  the  Congress 
now  elected  shall  turn  its  attention  from  the  dead  issues  of  the  past  to  the  great  fiscal 
questions  of  the  future  that  are  now  pressing  for  consideration.  (See  page  221.) 

The  total  weight  of  our  grain  crops  in  the  year  1880  was  seventy  million  tons 
(70,000,000  tons).  How  much  have  the  people  of  the  United  States  been  saved  by  the 
service  of  the  railroads  in  the  cost  of  moving  their  own  supply  of  food  ? 

If  we  begin  our  computation  in  the  year  1866,  being  the  year  after  the  war  ended 
and  the  reduction  of  debt  began,  and  estimate  the  sum  saved  in  each  year  on  all  the 
merchandise  moved  by  railroads  in  the  United  States,  the  saving  wiU  presently  be 
proved  to  amount  to  a sum  more  than  equal  to  the  sum  that  has  been  paid  upon  the 
National  debt.  In  other  words,  if  we  were  to  apply  the  rate  paid  for  the  movement 
of  merchandise  from  1866  to  1869,  inclusive,  reduced  to  gold,  to  the  quantites  moved 
in  each  year  from  1866  to  1880,  inclusive,  and  then  deducted  the  amount  that  has  been 
actually  paid  from  the  aggregate  of  that  estimate,  the  difference  amounts  to  more  than 
eleven  hundred  million  dollars  ($1,100,000,000),  how  much  more  than  this  sum  wil 
presently  appear ; the  facts  are  too  startling  to  be  stated  fully,  without  proofs  pre- 
ceding them  that  will  prevent  their  being  doubted  by  the  most  incredulous. 

The  details  of  the  traffic  of  other  railroads  are  not  yet  available  to  prove  this  esti- 
mate, but  soon  will  be  when  Poor’s  Manual  of  1881  is  published  ; but  that  the  rule  of 
increase  of  traffic  and  decrease  of  charge  has  been  constant  upon  the  lines  centering  in 
Chicago,  as  well  upon  those  connecting  Chicago  with  the  sea,  wiU  be  proved  by  the 
fact  that,  comparing  the  year  1868  on  the  Pittsbm*gh,  Fort  Wayne  and  Chicago,  1869 
on  the  Illinois  Central,  Chicago,  Milwaukee  and  St.  Paul,  and  Chicago,  Burlington 
and  Quincy,  and  1870  on  the  Chicago  and  Northwestern,  the  tons  moved  increased 
from  7,708,106  to  17,515,891  in  1879,  and  the  average  charge  per  ton  per  mile  decreased 
47  per  cent. 

One  proposition  wiU  now  be  absolutely  sustained,  to  wit : That  the  excess  of  cotton 
which  has  marked  the  increased  efficiency  of  free  labor,  added  to  whatever  sum  has 
been  saved  in  the  increased  efficiency  of  the  railroads,  far  more  than  equals  the 
reduction  of  debt  since  the  war  ended. 

It  therefore  follows  that  no  man  in  all  this  broad  land  has  been  obliged  to  work  harder 
in  order  that  the  debt  might  be  paid,  but  the  reduction  has  been  compassed  by  free  labor 
and  free  railroads. 

The  price  of  cotton  has  declined,  but  the  value  of  each  year’s  crop  has  increased  ; and 
while  the  gold  value  of  W estern  farm  products  has  hardly  altered,  the  crops  have  doubled. 

It  cannot  be  too  often  repeated  that  the  railway  and  the  steamship  have  eliminated 


By  Edward  Atkinsoi^. 


13 


distance.  The  Western  farm  and  the  Eastern  workshop,  the  Southern  plantation  and 
the  Northern  factory  have  been  brought  near  each  other,  and  in  the  process  the  very 
hnes  of  railroad  that  have  been  most  profitable  to  their  owners  are  the  specific  lines 
that  have  performed  the  largest  service  at  the  least  cost  to  those  who  use  them.  One 
day’s  wages  of  a common  mechanic  in  Massachusetts  will  pay  the  cost  of  moving  his 
year’s  substance  of  bread  and  meat  one  thousand  miles,  from  Chicago  to  Boston. 

When  we  consider  this,  we  may  realize  that  Cornelius  Vanderbilt  and  his  associ- 
ates who  led  the  way  in  the  consolidation  of  the  railway  service,  and  thus  rendered 
low  costs  possible,  were  the  great  communists  of  the  day.  They  brought  about  com- 
munity of  subsistence  and  carried  abundance  to  the  door  of  the  common  laborer. 
For  every  cent  they  earned  in  the  railway  traffic  and  added  to  their  great  fortunes, 
the  people  have  saved  a dollar’s  worth  of  labor  in  the  work  of  earning  their  sub- 
sistence by  the  reduction  of  the  charges  that  steadily  accompanied  the  increase  of  the 
traffic  upon  the  railroads. 

It  matters  little  whether  their  motive  was  that  of  pure  selfishness  or  enlightened 
seK-interest,  the  result  is  the  same.  All  commerce  is  an  exchange  of  services,  and  it 
may  often  happen  that  he  who  makes  the  greatest  fortune  works  the  greatest  benefit 
to  the  community,  whether  he  knows  it  or  not ; and  to  this  rule  the  great  railroad 
corporations,  even  if  they  have  no  souls,  form  no  exception.  The  principal  and  most 
profitable  among  them  now  do  the  largest  amount  of  work  for  the  commimity  at  the 
lowest  cost  of  any  that  are  in  operation,  and  there  is  no  other  great  element  in  the 
cost  of  subsistence  of  the  whole  people  that  has  been  so  much  cheapened  in  the  last 
ten  or  twenty  years,  as  the  cost  of  railway  service. 

May  we  not,  therefore,  dread  the  attempt  of  State  Legislatures,  and  of  Congress, 
to  alter  these  conditions  by  meddlesome  statutes,  and  to  prescribe  rules  for  the  con- 
duct of  this  vast  and  varied  service  ? If  either  body  were  to  attempt  to  regulate  the 
production  of  the  farm  by  statute,  who  would  be  more  quick  to  resent  the  interference 
than  the  farmers  themselves  ? But  the  farmers  derive  their  titles  to  their  lands  from  the 
same  source  that  the  railway  owner  holds  the  title  to  its  track.  They  are  no  more  pro- 
ducers than  the  common  carriers  are  ; they  move  the  soil  with  their  machines  ; they 
move  the  seed  ; they  move  the  crop  on  their  wagons  to  the  mill  and  to  the  market. 
All  that  the  railroad  does  is  to  keep  the  product  moving.  One  is  as  much  under  the 
supervision  of  law  as  the  other,  but  if  the  work  of  either  could  be  regulated  by  statute 
with  success,  it  would  be  the  simple  work  of  the  farmer  and  not  the  complex  work  of 
the  railroad. 

Again,  who  would  be  more  ready  to  resent  any  attempt  to  control  the  rate  of  wages 
or  earnings  by  statute  than  the  great  body  of  consumers  to  whom  the  railroad  carries 
its  beneficent  service?  Yet  this,  again,  would  need  but  a page  where  the  prescriptions 
for  the  earnings  or  wages  of  the  railway  would  need  a whole  code  of  laws. 

Service  for  service  is  the  rule  of  aU  exchange,  and  it  is  the  competition  of  product 
with  product  in  all  the  great  markets  that  absolutely  controls  the  traffic  on  every  line 
of  rail,  and  in  the  long  run  compels  its  managers  to  do  the  most  work  for  the  least 
charge.  The  price  of  wheat  in  Odessa  controls  the  policy  of  the  N.  Y.  Central  R.  R. 

On  the  other  hand,  the  cost  of  railway  service  is  not  alike  between  any  two  points 
in  the  country  ; it  differs  with  the  grades,  with  the  distance  from  fuel,  with  the  appli- 
ances for  loading  and  unloading  the  cars,  and  with  the  length  of  the  haul. 

It  may  be  said  that  with  aU  the  ability  that  has  yet  been  given  to  the  problem,  no 
rule  has  yet  been  devised  by  which  the  special  cost  of  any  particular  service  can  be  as- 
certained with  accuracy,  and  the  only  approach  to  a rule  yet  known  is  based  on  a 
crude  computation  of  averages ; and  it  has  been  well  said  that  the  railway  service 
requires  a legislature  of  experts  in  constant  session  to  save  it  from  ruin. 


14 


The  Railroad  and  the  Farmer. 


Id  his  Railroad  Manual  of  1880,  Mr.  Henry  V.  Poor  contrasts  the  average  charge 
per  ton  per  mile  on  several  of  the  great  through  routes  between  the  East  and  West, 
constituting  the  very  lines  against  which  the  charge  of  monopoly  is  most  frequently 
raised. 

He  gives  the  tons  moved  on  thirteen  principle  lines  and  the  receipts  from  freight. 
While  the  traffic  increased  47^  per  cent.,  the  earnings  increased  only  3 84-100  per  cent. 
The  average  rate  per  ton  per  mile  in  1873,  on  all  merchandise,  was  1.77  cents  ; in  1879 
only  1.02  cents. 

He  then  goes  on  to  say  : 

“ The  freight  earnings  given  in  the  above  table  were  in  1873  about  one- third  of 
those  of  all  the  railroads  in  the  United  States,  and  in  1879  about  one-fourth.  Had  the 
rates  of  1873  been  maintained  in  1879,  the  receipts  for  the  latter  year,  instead  of  being 
$116,311,452,  would  have  reached  on  the  roads  named  the  sum  of  $230,618,838,  and  for 
the  United  States,  $922,475,352.  The  difference  between  the  amount  actually  received 
and  that  given  above  shows  what  has  been  gained  by  the  public  in  the  operations  of 
our  railroads  alone.  In  no  other  branch  of  commerce  can  anything  like  this  saving  be 
shown.  It  is  the  result  of  intelligence,  skill  and  ingenuity,  left  free  to  work  out  the 
best  possible  results,  unhampered  by  other  legislation  than  that  of  their  own  officers 
composing  a legislature  in  constant  session.” 

This  reduction  in  the  cost  of,  and  in  the  charge  for  the  service  of  railroads,  is  more 
than  equal  to  the  reduction  of  the  public  debt  in  the  same  period,  from  1873  to  1879, 
yet  the  more  it  has  been  accomplished  the  louder  has  been  the  clamor  for  legislative 
interference  and  the  greater  has  been  the  misrepresentation  of  the  true  facts.  Land- 
owners  whose  possessions  would  have  remained  a wilderness,  farmers  who  could  have 
found  no  market  for  their  produce,  miners  who  could  not  have  smelted  their  ores,  unite 
in  their  endeavor  to  cripple  and  retard  the  progress  of  those  who  have  conferred  the 
greatest  benefit  upon  them,  and  in  this  attempt  are  aided  by  counsel  whose  statements 
of  facts  and  estimates  in  figures  have  as  little  basis  in  reality  as  the  policy  they  sustain 
has  in  sound  reason.* 

It  cannot  be  denied  that  this  vast  change  in  the  railway  traffic  has  been  ac- 
companied with  some  hardships.  There  have  been  periods  when  a railroad  war 
has  occurred  and  the  charge  between  far  distant  points  has  been  reduced  to  less  than 
cost.  At  such  times  the  charge  between  intermediate  points,  not  being  reduced  in  the 
same  proportion,  has  seemed  unduly  high,  and  many  places  have  suffered  from  what 
appeared  to  be  an  unjust  discrimination  ; but  the  real  fault  may  have  been  that  the 
rate  on  the  long  traffic  has  been  too  low  and  not  that  the  rate  on  the  short  traffic  has 
been  too  high. 

Again,  the  terminal  charges  constitute  a much  greater  part  of  the  cost  than  any 
one  who  has  not  carefully  examined  the  subject  would  believe  ; they  therefore  consti- 
tute a very  large  element  in  the  cost  of  a short  haul  on  small  quantities,  and  may  be  a 
very  small  element  in  a long  haul  of  very  large  quantities. 

Again,  it  is  impossible  that  such  a service  should  have  been  organized  in  so  short  a 
time  without  inequalities  for  which  time  only  could  disclose  a cure. 

When  we  think  of  this  vast  service  in  the  concrete  the  mind  almost  refuses  to  re- 
ceive the  impression,  and  the  magnitude  of  the  transactions  and  of  the  quantities 
moved  renders  the  comprehension  of  the  simple  elements  of  the  problem  exceedingly 
difficult.  The  subject  must  be  presented  in  its  two-fold  aspect — in  terms  of  least  and 
greatest.  The  daily  ration  of  solid  food  of  an  adult  consists  of  about  two  and  a half 


* See  the  exposure  by  Albert  Fink  of  the  mis-statements  made  by  Judge  J.  S.  Black  (iV.  Y.  Worlds 
Feb.  25, 1881,  and  in  later  numbers  of  the  same  paper). 


By  Edward  Atkinson. 


15. 


to  three  pounds  of  meat,  bread,  vegetables,  sugar,  butter,  etc. — let  us  call  it  three 
pounds,  or  one  pound  each  for  breakfast,  dinner  and  supper. 

The  great  crops  of  grain  now  produced  in  this  country  weigh  seventy  million  tons 
the  hay  crop,  which  is  but  a synonym  for  meat,  butter  and  cheese,  adds  thirty  million 
more  ; to  these  must  be  added  the  root  crops, — the  weight  of  sugar,  tea,  coffee  and  other 
articles  of  food  ; in  all,  not  less  than  one  hundred  and  fifty  million  tons  of  food  must 
be  consumed  by  this  nation  or  exchanged  for  the  foreign  products  that  we  need.  This 
huge  volume  is  but  one  year’s  supply,  to  be  moved  not  only  once,  but  twice,  thrice,  and 
more  ; it  must  all  be  converted  and  reconverted,  sorted,  divided  and  exchanged.  Three 
hundred  thousand  million  food  pounds  to  be  converted,  condensed,  and  finally  sorted 
into  as  many  parcels  of  three  pounds  each  as  there  are  people,  in  order  that  each  may 
have  a breakfast,  a dinner  and  a supper. 

How  is  this  movement  compassed  ? By  cart  and  wagon ; by  railroad,  lake  or  canal ; 
again  by  wagon  or  by  hand  ; if  the  movement  be  analyzed  the  most  costly  part  is  the 
last  or  final  distribution.  If  the  wheat  be  traced  throughout  its  course  the  heaviest 
single  charge  upon  it  will  be  found  to  be  the  cost  of  distributing  the  loaves  of  bread 
that  come  from  the  baker’s  oven  ; the  lightest,  the  charge  for  moving  the  barrel  of 
flour  a thousand  miles  from  Chicago  to  the  seaboard. 

Ten  barrels  of  flour  constitute  a ton  weight — the  railways  earn  a dividend  when 
moving  this  quantity  a thousand  miles  at  five  to  seven  dollars  a ton,  or  half  a cent  ta 
seven-tenths  of  a cent  a ton  a mile, — 1,000  miles  at  only  fifty  cents  a barrel ! What 
does  it  cost  to  move  the  barrel  from  the  railway  to  the  warehouse — from  the  ware- 
house to  the  baker’s  oven  ? How  far  will  half  a dollar  or  seventy  cents  go  in  paying 
the  cost  of  moving  and  distributing  the  100  to  300  loaves  of  bread  that  are  usually  made 
from  that  barrel  ? 

Any  attempt  to  control  the  rates  that  may  be  charged  upon  a railroad  by  statute  is 
but  an  indirect  attempt  to  regulate  prices  by  law.  Such  undertakings  have  always 
failed.  If  legislators  desire  to  test  their  ability,  let  them  undertake  to  regulate  the 
traffic  in  loaves  of  bread,  and  see  how  much  they  can  cheapen  the  cost  of  running 
bakers’  carts  and  carrying  on  grocers’  shops.  Every  sumptuary  law  has  failed  ; scarcity 
has  ensued  from  every  attempt  to  regulate  prices  by  law  in  all  lands  and  at  all  times  ; 
and  even  where  statutes  regulating  the  price  of  railway  traffic  have  been  enacted  in 
this  country,  they  have  either  been  disregarded  or  repealed  as  soon  as  the  attempt  to 
enforce  them  has  proved  their  mischievous  effect. 

The  traffic  over  the  New  York  Central  and  Hudson  River  Railroad,  mostly  from 
Buffalo  to  New  York,  amounted  in  1880  to  over  ten  million  tons,  one-half  or  two-thirds 
of  which  was  food.  For  this  part  of  the  distance  between  New  York  and  Chicago,  the 
proportion  of  each  half  dollar  on  each  barrel  of  flour  was  not  over  thirty  to  thirty -five 
cents.  If  a forced  reduction  of  this  charge  could  be  made  by  law  to  the  extent  of  one- 
half,  consumers  and  producers  might  gain  fifteen  to  twenty  cents  a barrel,  but  the  end 
might  be  bankruptcy  even  to  that  great  corporation.  Fifteen  to  twenty  cents  is  little 
if  any  more  than  the  average  cost  of  moving  that  barrel  from  the  warehouse  of  the 
dealer  to  the  dwellings  of  his  customers.  On  such  small  fractions  does  the  great  rail- 
way service  now  depend. 

There  is  another  aspect  of  least  and  greatest.  Nearly  60,000,000  tons  of  coal  are 
mined  and  moved  every  year,  and  a large  amount  of  this  coal  is  consumed  in  the  rail- 
way locomotives  that  again  are  worked  in  moving  other  substances.  The  present 
locomotive  engine  is  almost  barbarous  in  its  waste  of  fuel ; not  over  three  or  four  per 
cent,  of  the  actual  units  of  heat  in  this  fuel  are  converted  into  the  actual  motion  of 
the  train,  and  the  dead  weight  of  the  train  and  engine  is  three  or  four  to  one  of  the^^ 
load  carried.  Not  over  one  pound  in  a hundred  of  coal  consumed  on  a railroad  is  act- 
ually and  absolutely  applied  to  the  movement  of  the  load.  Yet  this  power  has  caused 


16 


The  Railboad  anp  the  Farmer. 


a social  revolution  in  this  country,  and  is  rendering  the  payment  of  rent  on  land  de- 
voted to  agriculture  in  Great  Britain  almost  if  not  quite  impossible,  because  it  has 
enabled  us  to  sell  grain,  meat  and  dairy  products  at  such  low  prices  that  they  leave 
little  or  no  margin  for  rent  on  land  devoted  to  their  production  in  any  part  of  the 
Kingdom  of  Great  Britain  and  Ireland. 

Having  thus  presented  a part  of  the  argument  in  favor  of  free  railroads,  and  stated 
the  result,  before  we  consider  the  final  summary  let  us  devote  a small  space  to  the  ben- 
eficent power  of  free  labor,  cotton  as  well  as  corn  constituting  one  of  the  great  powers 
of  the  land. 

In  the  last  years  that  preceded  the  final  struggle  by  which  this  nation  at  last  be- 
came truly  free,  the  writers  in  “De  Bow’s  Southern  Review”  gravely  argued  that  it 
was  the  high  price  and  not  the  low  price  of  cotton  that  limited  its  production ; be- 
cause, for  every  cent  a pound  added  to  the  price  of  cotton  a hundred  dollars  was  added 
to  the  price  of  the  human  chattel  that  raised  the  crop  ; hence,  whatever  the  stimulus 
to  the  traffic  in  slaves  this  might  give,  the  States  or  sections  that  engaged  in  the  most 
abhorrent  and  barbarous  practice  of  supplying  this  demand  could  not  adequately 
meet  it.  It  thus  happened  from  1858  to  1860,  when  the  spindles  of  the  North  and  of 
Europe  were  rapidly  increasing,  that  for  every  million  dollars  expended  in  a new  fac- 
tory, the  Cotton  States  must  have  earned  and  expended  a million  and  a half  dollars  in 
■stocking  with  human  live  stock  and  starting  the  new  plantation  that  was  to  supply 
the  mill  with  cotton. 

That  this  could  not  be  done  was  plain  to  the  far-seeing  vision  of  the  few  leaders  in 
Secession  by  whose  acts  the  Civil  War  was  promoted,  and  under  whose  malignant  con- 
trol white  and  black  alike  were  kept  in  the  bondage  of  oppression  and  of  ignorance  ; 
hence  the  iU-concealed,  and  often  openly  avowed  determination  to  re-open  the  slave 
trade. 

It  wiU  not  be  long  ere  these  base  purposes  will  appear  to  have  been  as  infamous  to 
the  progressive  men  who  now  constitute  the  New  South  as  they  did  to  John  Brown 
when  he  began  the  great  struggle  for  freedom  in  his  attack  upon  Harper’s  Ferry,  and 
the  time  may  not  be  far  distant  when  the  descendants  of  the  soldiers  in  the  Confed- 
erate armies  will  erect  a monument  to  John  Brown  as  the  great  liberator  of  their  land 
from  oppression. 

The  inefficiency  of  the  old  system  will  be  apparent  from  the  two  following  tables . 

Feeble  attempts  have  sometimes  been  made  to  disprove  the  evidence  of  these 
figures  ; it  has  been  affirmed  that  the  increase  of  cotton  has  been  due,  not  so  much  to 
the  greater  efficiency  of  labor  as  to  the  application  of  white  labor  to  new  fields  under 
new  conditions.  What  better  testimony  could  be  borne  to  prove  the  utter  inefficiency 
of  the  old  system,  which  compelled  the  most  intelligent  masters  to  work  their  slaves 
with  the  rudest  tools  and  most  unfit  methods,  but  forbade  white  men  working  at  all 
©xcept  imder  a sense  of  indignity.  It  is  grandly  tiue  that  emancipation  struck  the 
shackles  from  the  wrists  of  white  as  well  as  black — mind  and  muscle  were  set  free 
together. 

The  most  conclusive  evidence  of  progress  in  the  Cotton  States  is  to  be  foimd  in  the 
immense  increase  in  the  number  of  small  farms ; but  still  further  evidence  is  to  be 
foimd  in  the  fact  that  the  consolidation  of  Southern  railroad  lines  has  begun,  by  which 
the  cost  of  transportation  between  North  and  South  will  soon  be  reduced  at  least 
one-half. 

When  this  occurs  the  advantage  of  the  manufacturer  of  New  England  over  his 
competitor  in  Old  England,  which  now  varies  from  half  to  three-quarters  of  a cent  a 
pound,  may  be  increased,  to  our  great  advantage  in  the  export  of  cotton  fabrics. 


By  Edward  Atkinson. 


17 


Crops  op  Cotton  of  the  United  States — Fifteen  Years  of  Slave  Labor. 


Season. 

Bales. 

1840-7 

1,860,479 

1847-8 

2,424,113 

1848-9 

2,808,596 

1849-0 

2,171,706 

1850-1 

2,415,257 

1851-2 

3,090,020 

1852-3 

3,352,882 

1853-4 

3,055,027 

1854-5 

2,932,339 

1855-6 

3,645,345 

1856-7 

3,056,579 

1857-8 

3,238,962 

1858-9 

3,994,481 

1859-0 

4,823,770 

1860-1 

3,826,086 

46,675,591 

It  is  doubtless  true  that  a considerable  part  of  the  recent  crops  have  been  made  by- 
white  labor  ; that  proves  yet  more  conclusively  the  redemption  of  the  Cotton  States 
from  oppression. 


Crops  op  Cotton  of  the  United  States. — Fifteen  Years  of  Free  Labor. 


Season. 

Bales. 

1865-6 

2,228,987 

1866-7 

2,059,271 

1867-8 

2,498,898 

1868-9 

2,439,039 

1869-0 

3,154,946 

1870-1 

; 4,352,317 

1871-2 

2,974,351 

1872-3 

3,930,508 

1873-4 

4,170,388 

1874-5 

3,832,991 

1875-6 

4,669,288 

1876-7 

4,485,423 

aaaiiSi^sBsm 

1877-8 

4,811,000 

1878-9 

5,073,531 

1879-0 

5,757,397 

56,438,335 

Excess  of  15  Free  Labor  Crops . 


9,702,741 


The  crop  of  cotton  of  1880-81  will  probably  reach  6,250,000  bales. 


IS 


Thpj  Railroad  and  the  Farmer. 


It  may  now  be  time  to  show  the  relation  which  the  excess  of  our  grain  and  cotton 
crops  have  borne  to  the  reduction  of  our  national  debt.  It  is  with  the  excess  of  farm 
products  of  grain  and  cotton  that  we  have  paid  our  foreign  debt  and  have  reduced  tbe 
gross  debt  of  the  nation. 

The  maximum  debt,  liquidated  and  unliquidated,  as  computed  by  Hon.  Hugh 
McCulloch  in  his  last  report  as  Secretary  of  the  Treasury  : 


On  the  1st.  August,  1865,  amounted  to $2,997,386,203 

On  the  1st  M irch,  1881,  it  was 1,879,956,412 

Decrease  in  15  years  and  7 months $1,117,429,791 


The  excess  of  cotton  raised  in  this  period  above  the  quantity  raised  in  the  last  15 
years  of  slavery,  9,762,741  bales,  all  of  which  has  been  exported,  has  been  worth  in 
gold  coin  over  $650,000,000.  When  this  year’s  crop  is  added  and  sixteen  years  are 
compared,  the  excess  of  free  over  slave  labor  will  be  nearly  14,000,000  bales,  worth  in 
gold  coin  at  least  $800,000,000. 

The  great  progress  of  this  nation  and  its  relief  from  the  burthen  of  debt  are  due  two 
factors — free  labor  and  free  railroads.  Add  to  the  first  fruits  of  liberty  in  the  Cotton 
States  the  sum  that  has  been  saved  on  our  grain  crop  by  the  reduction  of  the  charge 
upon  our  railroads,  and  the  aggregate  of  the  two  sums  is  vastly  more  than  equal  to  the 
amount  that  we  have  paid  upon  our  national  debt  in  the  period  that  has  elapsed  since 
the  surrender  of  the  Rebel  armies. 

Without  this  reduction  in  the  railway  charge  the  export  of  grain  and  meat  would 
have  been  very  limited,  and  the  grain  would  either  have  been  wasted  or  it  could  not 
have  been  produced.  The  relief  from  the  crowded  state  of  the  cities  that  took  effect 
during  the  war  would  not  have  been  possible,  nor  could  the  disbanded  armies  have 
found  peace  and  prosperity  on  the  farms  of  the  Great  West. 

In  the  four  years  after  our  armies  were  disbanded,  preceding  January  1,  1870,  to 
wit,  1866  to  1869  inclusive,  the  actual  tons  moved  over  the  New  York  Central  and 
Hudson  River  Railroads  numbered  10,102,569 ; the  tons  moved  one  mile  numbered 
1,868,448,779 ; the  freight  earnings  were  $50,556,875  in  currency,  or,  reducing  each 
year’s  earnings  to  gold  at  the  average  rate  of  each  year,  $36,560,000  in  gold. 

The  average  charge  per  ton  per  mile  for  this  period  was,  therefore, 

In  currency 2.7058  cents. 

In  gold 1.9567  “ 

In  the  ten  years  ensuing,  1870  to  1879  inclusive,  the  actual  tons  moved  on  the  same 
line  numbered  60,221,553 ; the  tons  moved  one  mile  numbered  14,353,521,585 ; the 
freight  earnings  in  currency  were  $174,594,548  ; reduced  to  gold,  $159,658,000. 

The  average  charge  per  ton  per  mile  in  this  period  was,  therefore. 

In  currency 1.2164  cents. 

In  gold 1.1123  “ 

The  reduction  in  currency  has  therefore  been  1.4894  cents  per  ton  per  mile,  in  gold 
.8444  cents  in  the  latter  period  as  compared  to  the  former.  Applying  these  rates  of 
reduction  to  the  tons  moved  one  mile  in  the  ten  years,  1870  to  1879,  inclusive,  to  wit, 
14,353,521,585,  we  get  the  following  results  : 


Reduction  in  currency $213,781,350 

Reduction  in  gold $121,201,136 


That  is  to  say,  had  this  line  been  able  to  charge  the  same  rate  in  gold  from  January 
1,  1870,  to  January  1,  1880,  that  it  did  charge  from  January  1,  1866,  to  January  1,  1870, 
its  earnings  from  freight  would  have  been  $121,201,136,  or  70  per  cent,  more  than  the 
actual  charge  made  and  collected. 

Does  any  one  suppose  that  this  reduction  was  made  from  choice  ? Would  not  the 
managers  of  this  line  have  charged  the  same  rate  in  each  period  if  they  could  ? This 
change  has  been  accomplished  under  the  pressure  of  three  separate  factors  : 


By  Edward  Atkinson. 


19 


First. — The  competition  of  railroad  with  railroad,  working  in  moderate  degree. 

Second. — The  competition  of  all  the  railroads  with  all  the  water-ways  of  the 
country,  working  constantly,  and  each  year  more  and  more  effectively. 

Third. — The  competition  of  product  with  product,  in  all  the  great  markets  of  the 
world — the  most  potent  factor  of  all  the  three. 

Had  not  this  reduction  in  the  charge  for  moving  our  crops  been  made  upon  this  line, 
coupled  with  an  equivalent  reduction  on  all  the  lines  between  Chicago  and  the  sea- 
board ; had  there  not  been  a reduction  in  substantially  the  same  degree  on  aU  the  great 
Western  lines  centering  in  Chicago,  the  crops  could  not  have  been  moved  at  all ; they 
could  not  even  have  been  made,  because  the  export  of  the  surplus  not  required  for 
home  consumption  would  have  been  forbidden. 

Had  not  the  production  of  these  great  crops  been  promoted  and  made  possible  by 
their  further  production  or  leading  forth  ui)on  the  railroad  to  the  use  of  men,  our  dis- 
banded armies  could  not  have  found  homes  and  work  without  long  delay,  but  they 
would  have  been  crowded  back  upon  the  cities  and  towns  already  occupied  by  the 
excess  of  population  that  the  abnormal  demands  of  war  had  centered  in  them. 

There  is  but  one  more  example  that  needs  to  be  given.  In  the  single  year  1879  the 


tons  moved  one  mile  on  the  N.  Y.  C.  and  H.  R.  R.R.  numbered 2,295,827,387 

Ereight  earnings $18,270,250 

In  the  four  years  1866  to  1869  inclusive,  the  tons  moved  one  mile  num- 
bered  1,868,448,779 

Freight  earnings  in  currency $50,556,875 

“ in  gold $36,560,000 

Grold  charge  per  ton  per  mile  in  1866  to  1869  inclusive 1.9567  cents. 

“ “ “ in  1879 7954  “ 


Reduction 1.1613 


Had  the  charge  of  the  first  period  been  made  upon  the  traffic  of  1879  the  difference 
would  have  been  $26,650,000  more  than  the  actual  amount  collected. 

The  following  table  gives  in  a graphial  form  the  facts  that  mark  the  changes  that 
have  occurred  on  the  New  York  Central  and  Hudson  River  Railroad,  comparing  the 
average  of  each  year,  1866  to  1869  inclusive,  with  the  single  year  1879  : 

Each  Year’s  Average  from  1866  to  1869,  Inclusive,  Compared  to  1879. 


New  York  Centrai.  & Hudson  River  R.R. 


Increase. 

Per  Cent. 

Actual  tons  moved 

374 

Tons  moved  one  mile 

491 

iiiiriii  mil  III  III  II  llllllllllllll||lllllllllllllllllll■■l■lllll■l«^ 

Earnings  in  gold 

200 

Decrease. 

Charge  per  ton  per  mile  in  gold 

59.35 

Actual  charge  on  9,441,213  tons  moved  in  1879 818,270,550 


Actual  charge  on  9,441,213  tons  moved  in  1879 818,270,550 

Caarge  as  it  would  have  been  had  the  average  gold  rate  of  1866  to  1869  inclusive,  been  made 

in  1879  844,920.250 


in  1879  844,920.250 


Deference  saved  on  the  traffic  of  1879. 


826,650,000 


20 


The  Railroad  and  the  Farmer. 


In  the  consideration  of  this  table  two  facts  should  be  observed  : 

First. — That  the  increase  in  the  tons  per  mile  moved  exceeds  the  increase  of  twe 
actual  tons  moved  117  per  cent.,  from  which  fact  it  would  appear  that  the  local  or  Sta«e 
traffic  has  gained  in  more  than  a full  proportion  from  the  reduction  in  the  charge  per 
ton  per  mile. 

Second. — The  prices  of  the  leading  products  of  agriculture  named  in  a preceding 
table,  at  the  port  of  New  York,  were  substantially  the  same  in  1879  as  they  were  if 
computed  in  gold  in  1869,  from  which  it  may  be  assumed  that  Western  producers  have 
received  the  full  benefit  of  the  reduction  upon  the  through  traffic. 

All  the  data  for  the  above  computations  have  been  taken  from  ‘ ‘ Poor’s  Railroad 
Manuals  ” without  any  knowledge  on  the  part  of  any  person  connected  with  any 
railroad  line  of  the  writer’s  intention  to  prepare  this  statement ; some  of  the  tables 
have  been  submitted  to  railroad  officials  for  examination,  but  the  writer  has  no  con- 
nection with  and  hardly  any  interest  in  any  railroad  ; his  sole  purpose  in  the  preparation 
of  this  paper  has  been  to  clear  away  the  rubbish  that  obscures  a most  important 
public  question. 

The  traffic  upon  the  New  York  Central  & Hudson  River  Railroad  in  1880  amounted 
to  over  ten  million  (10,000,000)  tons.  Mr.  H.  V.  Poor  estimates  the  traffic  on  all  the 
railroads  of  the  United  States  in  the  same  year,  including  coal,  at  two  hundred  and 
fifty  million  tons  (250,000,000). 

The  traffic  on  this  line  has  not  increased  in  any  greater  degree  than  it  has  upon  many 
other  mam  lines  to  Chicago,  or  from  Chicago  to  the  sea,  although  it  may  have  increased 
more  than  that  of  other  lines  in  other  directions.  The  reduction  on  the  freight  charge 
has  been  equalled,  or  even  exceeded,  on  some  other  important  lines,  but  is  probably 
greater  than  the  average  on  all  the  lines  of  the  country  taken  together. 

The  saving  on  this  line  only,  in  the  ten  years  from  1870  to  1879  inclusive,  was  over 
one  hundred  and  twenty  million  dollars  in  gold  coin  ($120,000,000). 

If  the  traffic  on  this  line  represents  a twentieth  part  of  the  traffic  of  all  the  railroade 
of  the  United  States,  and  the  charge  has  been  decreased  in  the  same  ratio,  it  proves  a 
saving  of  twenty-four  hundred  million  dollars  ($2,400,000,000)  in  ten  years  time. 

But  there  is  another  more  certain  method  of  establishing  the  ratio  of  the  traffic  of 
this  line  to  all  the  rest.  In  the  Railroad  Manual  for  1880  the  freight  earning,  of  all  the 
roads  of  the  United  States  are  given  for  nine  years,  1871  to  1879  inclusive,  amounting 
to  $3,228,808,877. 

The  freight  receipts  of  the  New  York  Central  & Hudson  River  Railroad  during  the 
same  nine  years  were  $160,105,322,  or  substantially  one-twentieth  of  the  whole  amount. 

But  this  ratio  may  be  contested,  and  neither  time  nor  space  suffice  for  the  necessary 
proof.  It  may  be  alleged  that  the  reduction  of  charge  on  this  line  Mas  exceeded  the 
average. 

Let  it  suffice  to  prove  what  cannot  be  gainsaid,  and  what  will  presently  be  more 
than  proved  when  the  compilation  of  the  traffic  of  all  the  great  through  lines  is  com- 
pleted, on  which  Mr.  H.  V.  Poor  is  now  engaged  for  his  Manual  of  18jsl. 

If  the  reduction  on  ail  lines  has  only  been  one-half  that  upon  this  line  ; if  one-half 
remains  yet  to  be  gained,  still  the  aggregate  saved  has  been  twelve  hundred  million 
dollars  ($1,200,000,000),  or  a larger  amount  in  ten  years  than  the  aggregate  reduction  of 
the  national  debt  in  more  than  fifteen  years. 

If  this  he  admitted,  then  the  point  is  well  taken  that  no  man  has  worked  harder  or 
longer  in  order  to  make  this  payment;  hut  it  has  heen  the  result  of  only  a partial  solu- 
tion of  one  of  the  prohlems  of  distrihution. 

The  function  of  statute  laws  in  this  matter  has  been,  that  so  far  as  general  laws 
have  rendered  the  co-operation  of  labor  and  capital  possible,  by  means  of  the  organiza- 


By  Edward  Atkinson. 


21 


tion  of  corporations  competent  to  do  the  work,  they  have  been  necessary;  and  it  is  for 
that  work,  in  part,  that  governments  exist  and  that  statutes  are  needed. 

So  far  as  attempts  have  been  made  to  impose  special  conditions,  and  by  statutes  to 
regulate  rates  of  traffic  and  to  control  the  executive  work  of  the  railway  service,  they 
have  either  obstructed  progress  or  failed  to  meet  the  intention  of  those  who  framed 
them;  or  else  they  have  become  inopera+^ive  within  a very  short  time  after  their  enact- 
ment. 

The  forces  that  rule  this  country,  North  and  South  alike,  are  the  great  industrial 
powers  born  of  agriculture,  and  promoted  by  commerce  among  men  and  nations. 
These  forces  are  reconstructing  Southern  society,  and  forcing  even  the  most  unrepent- 
ant Bourbon  to  obey  their  behest ; while  the  ship-loads  of  corn  with  Which  we  have  at- 
tacked the  privileges  of  those  classes  in  England,  who  would  have  destroyed  this  nation, 
have  been  more  potent  than  any  weapons  of  war  that  were  ever  forged. 

The  writer  has  treated  this  subject  in  another  place,  but  is  permitted  to  present  it 
again,  in  order  to  show  yet  more  conclusively  the  power  of  the  farmer  and  the  rail- 
road when  united  in  the  bonds  of  a common  interest.  In  so  doing  he  must  indulge  in 
some  repetition.  He  has  no  apology  to  offer  for  this  or  any  other  repetition  in  pre- 
senting this  case.  It  must  be  considered  in  every  aspect  in  order  to  be  comprehended. 

American  competition  in  grain,  meat  and  dairy  products  is  making  it  almost  im- 
possible that  rent  shall  continue  to  be  paid  on  land  devoted  to  agriculture  in  Great 
Britain. 

From  recent  investigation  it  appears  that  out  of  72,117,766  acres  comprising  the 
total  acreage  of  Great  Britain,  exclusive  of  the  metropolis,  15,303,165  acres,  or  a 
little  more  than  one-fifth,  are  divided  into  1,593  separate  landed  estates,  and  are  held 
by  525  dukes,  marquises,  earls,  viscounts,  and  barons,  constituting  the  House  of  Peers. 
These  estates  have  yielded  an  annual  rent  of  £12,529,068,  over  $60,000,000.  Even  this 
statement,  startling  as  it  appears,  is  believed  by  Mr.  Arthur  Arnold  to  be  an  under- 
estimate both  of  the  acreage  and  of  the  rental,  as  the  estates  of  peeresses  were  not  in- 
cluded in  this  compilation,  neither  were  many  estates  held  in  special  trusts. 

In  the  further  treatment  of  the  question  of  land-tenure,  Mr.  Arnold  reaches  the 
conclusion  that  more  than  four-fifths  of  the  land  of  Great  Britain  is  in  the  possession 
of  about  7,000  persons  ; but  in  regard  to  their  title  he  makes  a distinction  between 
possession  and  ownership,  in  view  of  the  fact  that  at  least  52,000,000  acres  of  this  land 
are  held  by  those  who  are  only  life-tenants  under  entails  or  other  settlements.  Mr. 
Arnold’s  words  are,  “ I say,  in  possession,  because  the  landed  gentry  in  this  country 
are  not  owners,  in  the  strict  and  proper  sense  of  the  word,  of  the  lands  with  which 
their  names  and  titles  are  connected.” 

He  contests  the  view  commonly  held  in  this  country,  that  the  price  of  land  is  very 
high  in  England,  and  that  the  high  price  is  induced  by  the  social  distinction  that  its 
possession  implies  ; but  holds,  on  the  contrary,  that  the  price  of  land  is  far  below  its 
true  value,  and  that  it  pays  but  a low  rate  of  interest,  for  the  reason  that  its  use  and 
product  are  restricted  by  the  necessary  conditions  that  must  be  imposed  upon  the 
tenant,  in  order  that  the  system  of  landlord  and  tenant  may  be  sustained  at  all ; that, 
if  it  could  be  freely  used  in  the  cultivation  of  a variety  of  products,  the  income  would 
be  much  greater  and  the  price  would  then  advance. 

It  is  difficult  for  any  one  in  this  country  to  imagine  such  a condition  as  is  pictured 
hy  these  figures  ; four-fifths  of  the  area  of  a country  inhabited  by  about  33,000,000 
people,  owned  by  7,000  persons,  and  four-fifths  of  that  portion  held  only  under  a life- 
estate  ! 

Such  is  the  system  now  approaching  its  end  under  the  effect  of  our  competition. 
The  longer  legislative  abuses  or  obstructions  are  maintained,  the  more  severe  must 
be  the  struggle  for  their  removal ; yet  when  the  time  comes  they  must  yield,  because 


The  Railroad  and  the  Farmer. 


I 


22 


the  further  attempt  to  maintain  them  means  war  or  anarchy.  Witness  the  condition 
of  Ireland  at  this  very  time. 

Let  the  bitter  struggle  through  which  England  passed  in  the  great  contest  over  the 
corn-laws  be  remembered  ; let  it  be  considered  that  the  power  of  the  House  of  Lords 
and  of  the  Established  Church  is  founded  mainly  on  the  possession  of  and  the  rent  of 
land  ; further,  that  the  very  existence  of  the  present  system  depends  absolutely  upon 
a body  of  trained  tenant  farmers,'  estimated  at  about  560,000  in  number,  in  Great 
Britain,  (there  are  over  600,000  tenants  in  Ireland)  whose  capital  has  been  invested  in 
improvement  of  these  lands  ; which  capital  has  been,  or  is  now  being,  destroyed  by  a 
series  of  bad  seasons  and  by  our  competition  ; that  without  these  tenant-farmers  the 
possessors  of  the  soil  are  as  powerless  to  use  land  as  they  now  are  to  dispose  of  it ; and 
then  the  true  meaning  of  wheat  at  forty  shillings  a quarter,  and  beef  at  sixpence  a 
pound,  will  be  apparent,  if  it  be  true  that  these  prices  will  continue  to  be  profitable 
to  us,  and  yet  forbid  any  rent  being  paid  upon  land  devoted  to  their  pro4uction  in 
England.* 

It  may  be  as  true  of  the  economic  as  of  the  spiritual  gospel,  that  it  brings  not 
peace,  but  a sword.  It  cuts  away  abuses,  that  in  their  fall  will  promote  much  misery 
before  the  righteous  conclusion  is  attained.  No  return  to  the  protection  of  agriculture 
in  Great  Britain  can  be  considered  for  a moment  : the  rent  of  land  is  but  a tithe 
of  the  income  of  the  people,  and  cheap  food  is  vital  to  the  very  existence  of  the  vast 
majority  who  are  engaged  in  manufactures,  in  commerce,  and  in  the  mechanic  arts. 
It  may  well  befit  us  who  are  spared  the  distress  which  must  ensue  before  this  revo- 
lution on  which  Great  Britain  is  now  entering  is  ended,  to  remember  that  we  are  mem- 
bers one  of  another,  bound  by  the  inter-dependence  of  nations,  and  that  upon  the  wel- 
fare of  England  our  prosperity  greatly  depends,  because  she  is  our  principal  customer. 
As  the  fall  of  slavery  brought  misery  on  both  North  and  South  here,  so  must  the 
fall  of  privilege  work  sadness  over  the  sea. 

It  is  this  system,  with  all  its  good  and  evil,  that  is  now  tottering  to  its  fall.  The 
pleasant  country  life,  of  which  Washington  Irving  gave  us  such  charming  pictures, 
and  of  which  we  have  read  so  much  in  English  literature,  may  have  to  give  place,  in 
order  that  pauperism  may  be  abated.  The  abounding  charity  of  those  who  enjoyed 
its  benefits  could  only  alleviate  this  evil  ; almost  a revolution  is  needed  to  remove  its 
cause.  Rented  land  must  of  necessity  be  cultivated  under  conditions  that  will 
maintain  its  fertility,  whether  held  under  lease  or  only  at  will.  These  conditions 
can  only  be  applied  in  any  large  measure  to  staple  crops  or  to  grazing  and  dairy  farm- 
ing ; they  are  inconsistent  with  small  farming,  unless  the  landlord  himself  owns  but 
a small  area  of  land,  and  gives  close  personal  supervision  to  the  manner  of  its  cultiva- 
tion by  his  tenants.  Great  estates  can  only  be  rented  on  the  conditions  that  are  applic- 
able to  the  great  staple  crops  of  grain,  or  to  the  products  of  the  dairy  and  of  meat. 

The  competition  in  the  sale  of  wheat  in  Great  Britain,  on  the  part  of  this  country, 
has  already  caused  a reduction  in  the  area  of  land  devoted  to  wheat,  from  a little  under 
4,000,000  acres  to  a little  over  3,000,000,  during  the  last  seven  years — a reduction  of  one- 
fourth.  A portion  or  the  whole  of  this  discarded  area  has  been  devoted  to  grazing, 
but  during  the  latter  part  of  this  period  our  competition  in  meat,  butter  and  cheese, 
has  effected  the  rent  of  land  used  even-  for  these  purposes.  The  English  Commis- 
sioners, Messrs.  Pell  and  Reed,  who  lately  visited  this  country,  concluded  that  there 
was  more  permanent  danger  of  our  competition  in  the  production  of  meat  than  of  the 
permanent  continuance  of  our  export  of  wheat. 


' * Seventy  per  cent,  of  the  tenant-farmers  of  England  occupy  less  than  50  acres  each ; 12  per  cent, 

between  50  and  100  ; IS  per  cent,  over  100.  Five  thousand  occupy  between  500  and  1,000  acres  each  ; 600 
occupy  over  1,000  acres  each. — Jas.  Caird,  Tlie  Landed  Interest. 


By  Edward  Atkinson. 


23 


They  seem  to  have  come  to  the  conclusion  that  our  railway  service  had  reached  its 
lowest  cost,  and  could  not  be  much  more  reduced  ; and  that  as  the  virgin  soil  of  the 
far  West  became  exhausted,  we  should  be  unable  to  export  wheat  at  less  than  forty- 
eight  shillings  a quarter,  although  they  admit  that  the  day  is  still  far  distant  when  this 
upward  limit  will  be  reached. 

In  the  meantime  rents  are  not  only  being  greatly  reduced  in  England,  but  many  of 
the  heavy  lands  as  yet  undrained  are  thrown  entirely  out  of  cultivation — the  encum- 
bered owners  being  unable  to  drain  or  improve  them,  and  no  tenant  being  willing  or  able 
to  work  them.  The  Irish  land  question  is  but  the  beginning  ; the  English  land  ques- 
tion must  come  next,  and  cannot  long  be  deferred.  It  may  happen  that  no  delay  in 
the  change  of  the  system  of  land  tenure  in  Great  Britain  need  be  made  in  the 
expectation  that  there  will  not  be  a continuance  of  our  supply  of  wheat,  and  that 
as  our  product  increases  in  ratio  to  our  home  demand  we  may  not  supply  wheat  in 
Liverpool  even  at  thirty  shillings  a quarter,  if  we  can  get  no  more. 

For  instance,  the  Blue  Limestone,  commonly  known  as  the  “ Blue  Grass”  section 
of  Kentucky,  covers  10,000  square  miles  or  6,400,000  acres — more  than  double  the  pres- 
ent wheat  acreage  of  Great  Britain.  It  appears  to  have  been  overlooked  by  the  Com- 
missioners, but  with  a tolerable  system  of  farming  it  is  capable  of  producing  as  large  a 
crop  of  wheat  per  acre,  without  manure,  as  the  average  of  the  high  farming  of  Eng- 
land— the  rotten  limestone  containing  a very  large  proportion  of  phosphates  sending 
up  new  elements  of  fertility  every  year,  so  that  the  cost  of  production  is  only  the  cost 
of  cultivation  and  of  harvesting  the  crop.  This  section  has  had  only  an  indirect  con- 
nection with  the  seaboard,  but  will  presently  have  one  or  more  direct  lines  of  com- 
munication averaging  about  650  miles. 

The  only  reason  that  a full  supply  of  wheat  may  not  then  be  profitably  sent  to  Eng- 
land at  thirty  shillings  a quarter  will  be  that  hemp,  tobacco,  horses,  mules  and  cattle 
will  pay  better.  There  are  several  other  sections  of  the  T^ew  South  from  which  nearly 
or  quite  as  good  results  may  be  expected,  of  which  even  we  at  the  North  as  yet  know 
but  little. 

Lest  it  seem  rash  to  make  positive  assertions,  let  us  consider  some  questions  in 
regard  to  a small  section  of  the  New  South,  that  may  even  make  it  necessary  for  some 
of  our  own  countrymen  to  study  geography  again. 

Cannot  a square  of  land,  about  three-fourths  as  large  as  France,  be  marked  off  in 
the  centre  of  that  portion  of  the  United  States,  lying  east  of  the  Mississippi  and  south 
of  the  Ohio,  comprising  a jxjrtion  only  of  the  States  of  Kentucky,  Tennessee,  Alabama, 
Georgia,  North  and  South  Carolina,  and  Virginia,  covering  the  “Blue  Grass,”  the 
“ Piedmont  District,”  the  ranges  of  the  Southern  Alleghenies  and  the  Blue  Ridge,  with 
the  rich  upland  valleys  lying  between ; all  of  which  section  will  range  from  650  to 
6,700  feet  above  the  sea,  and  be  quite  free  from  malaria,  unless  it  be  in  some  of  the  river 
bottoms?  Is  not  this  section,  which  is  nearly  twice  the  area  of  Great  Britain,  equal 
to  Great  Britain  and  France  combined,  in  the  variety  and  quantity  of  its  possible 
mineral  products,  and  more  than  equal  to  either  in  its  possible  agricultural  products  ? 

It  contains  the  purest  iron  and  coal  in  close  proximity  ; salt,  sulphur,  copper,  lead, 
zinc,  corundum  in  greatest  abundance,  and  also  gold,  which  could  well  be  spared  if  tin 
might  take  its  place.  . 

In  fact  it  may  well  be  asked  could  not  this  single  section  of  the  New  South  sustain 
the  present  agricultural  and  mining  population  of  the  United  States  in  health  and 
comfort,  and  under  much  better  average  climatic  conditions  than  they  now  enjoy  ? 

Is  not  this  terra  (almost)  incognita  of  this  country,  yet  inhabited  as  to  about  one- 
half  its  area,  only  by  a very  sparse  population,  so  isolated  by  the  surrounding  pall  of 
slavery  until  recent  years,  as  to  have  depended  wholly  upon  themselves  ? Are  there 
not  even  yet  numbers  of  inhabitants  in  these  fertile  mountains  and  valleys  clad  in 


24 


The  Railroad  and  the  Farmer. 


homespun,  some  of  whom  have  never  even  seen  a wheeled  veliicle,*  and  greater  num- 
bers who  have  never  seen  a locomotive  engine. 

la  not  a national  survey  of  this  territory  called  for,  in  order  that  the  facts  as  yet 
observed  only  by  a few  may  be  spread  upon  the  national  record  so  as  to  turn  the  tide 
of  emigration,  especially  of  the  English,  tovv-ard  a land  which  may  be  vastly  more 
congenial  to  them  than  the  distant  prairies  of  the  far  West  ? 

■VVeli  may  the  laborers  of  Europe,  borne  down  by  the  burthen  of  debts  that  can 
never  be  paid,  and  that  have  been  mainly  incurred  in  sustaining  the  vested  wrongs 
that  oppress  them,  have  watched  the  struggle  for  personal  liberty  in  this  land  as  one 
in  which  they  also  had  the  greatest  stake.  The  great  crops  that  have  been  treated 
in  this  paper,  are  but  the  first  fruits  of  that  personal  liberty — the  shadow  only  of  the 
substance  yet  to  come. 

The  population  of  Europe,  aside  from  Russia  and  Turkey,  numbers  about  225,000,000. 
They  occupy  an  area  equal  to  the  arable  land  only  of  this  country,  or  a little  over  1,500,- 
000  square  miles.  Upon  the  continent  of  Europe  more  than  one  in  every  hundred 
and  ten  ofthe  population  is  a soldier  in  active  service.  This  means  that  the  work  of 
one  adult  man  in  every  twenty-two  is  withdrawn  from  productive  seiwice,  and  he 
must  be  sustained  at  a heavy  cost  by  those  who  remain  at  work  ; of  whom  again  one 
and  most  couni  ries  two  more  are  forced  to  waste  a large  part  of  their  time  in  the 
reserve,  and  are  subject  to  be  called  into  active  war  at  a moment’s  notice. 

What  may  be  the  changes  that  the  adverse  conditions  of  Europe  and  the  prosper- 
ity of  this  country  may  bring  into  action,  few  can  yet  conceive.  Of  this  we  may  be 
sure — that  the  coming  century  of  liberty  and  commerce  will  only  serve  to  make  the  past 
century  of  slavery  and  war  more  dark  than  it  ever  seemed  before,  as  the  North  and 
the  New  South  united,  emerge  from  the  shadow  not  yet  quite  dispelled,  into  the  glorious 
sunlight  DOW  flashing  in  the  dawn. 

In  this  again,  the  figures  fail  to  convey  the  impression,  and  the  graphical  method 
must  be  adopted.  In  order  to  convey  the  impression,  let  us  omit  from  the  consideration 
the  half  civilized  nations  of  Russia  and  Turkey  in  Europe,  and  omit  Alaska  in  the 
United  States. 

Austria,  Germany,  Roumania,  Servia,  Montenegro,  Italy,  France,  Spain,  Portugal, 
Netherlands,  Belgium,  Greece,  Switzerland,  Great  Britain,  Denmark,  Sweden  and 
Norway  comprise  1,546,802  square  miles. 

The  United  States,  aside  from  Alaska  comprise  3,034,399  square  miles. 

The  national  debts  of  the  Empires  and  Kingdoms  of  Europe  in  the  above  list, 
according  to  the  latest  data  as  given  in  “ Mulhali’s  Progress  of  the  World,”  amounted 
to  $16,794,800,000. 

The  debt  of  the  United  States  on  the  1st  March,  1880,  was  $1,880,000,000. 

The  national  expenditures  of  the  above  named  States  of  Europe  in  1879,  amounted 
to  $2,282,800,000. 

The  national  expenditures  of  the  U nited  States  in  the  fiscal  year  ending  June  30, 
1880,  amounted  to  $267,642,957. 

The  population  of  the  States  of  Europe  named,  according  to  the  latest  census  taken 
at  different  dates  since  1875,  approximates  225,000,000. 

The  population  of  the  United  States,  .lune  1,  1880,  was  a trifle  over  50,000,000. 

The  staading  armies  of  the  States  of  Europe  named,  in  actual  service  in  camp  or 
barracks,  together  with  smaller  but  more  expensive  force  in  the  navies  of  the  maritime 
states  number  over  2,100,000  men,  to  whom  must  be  added  a much  greater  number 
in  the  reserves  who  have  wasted  years  of  their  lives  in  preparing  for  war,  and  who 
may  be  called  into  active  service  at  a moment’s  notice. 


* Such  is  the  testimony  of  recent  scientific  evplorers. 


By  Edward  Atkinson. 


25 


The  standing  army  of  the  United  States  numbers  25,000  men. 

The  following  table  will  convey  a much  more  vivid  impression  of  the  relative 
burthens  than  these  figures  can  give  : 

The  Burthens  upon  Europe  and  America  Compared  (Omitting  Russia,  Turkey 

AND  Alaska). 


Relative  Areas, 


QAO  c!/~*  Tniloc 

ihlirop©,  lUlloo 

United  States,  3,034,399  “ 

1 

Relative  Population  to  One  Square  Mile. 

Europe,  145  per  sq.  mile 

United  States,  16>^  “ 

Relative  Burthen  of  Debts  to  Each  Inhabitant. 


Since  1848  the  debt  of  Europe  has  nearly 
trebled  and  is  still  increasing.  In  1880  it 
was  $16,794,800,000,  or  an  average  to  each 
inhabitant  of  $74.64 


In  1848  the  United  States  owed  no  debt  of  any 
moment.  On  the  1st  August,  1866,  our 
war  debt  was  at  its  maximum,  and  was 
estimated  (liquidated  and  unliquidated) 
by  Secretary  McCulloch  at  $2,997,386,203— 
an  average  to  each  inhabitant  at  that 
date  of  $83.35 


March  1,  1881,  the  debt  had  been  more  than 
one-third  paid,  and  was  reduced  to  $l,879,-j 
956,412— an  average  to  each  person  of 
$38.85 


Relative  Burthen  op  National  Expenditures  to  Each  Inhabitant. 


Europe  in  1880,  $2,282,800,000— or  an  average 

In  the  United  States,  in  1866,  after  our  armies 
were  disbanded,  our  expenditures  were 
$346,729,130— or  an  average  of  $9.63  to 

In  the  fiscal  year  ending  June  30, 1880,  they 
were  $267,642,957— or  an  average  of  $5.35. 

Relative  Burthen  of  Standing  Armies. 

In  Europe  each  110  inhabitants,  or  at  the  ra- 
tio of  one  able-bodied  man  to  each  five, 
each  22  men  sustain  one  soldier  in  active 
service.  Tfie  reserves,  liable  to  be  called 
into  active  war  at  any  moment,  are  esti- 

mntpft  at  t.wipp  t.tift  rpgiila.r  armips 

In  the  United  States  each  2,000  inhabitants,  or 
each  400  men,  sustain  1 soldier 

1 

If  these  lines  do  not  convey  an  impression  of  duties  as  well  as  privileges  to  the  citi- 
zens of  this  country,  they  will  fail  of  their  purpose. 

26 


The  Railroad  and  the  Farmer. 


■While  our  Senators  are  debating  questions  of  appointment  to  petty  ofiices  connected 
with  that  body,  the  great  industrial  forces  of  the  Nation  are  seeking  true  statesmen 
who  shall  give  them  opportunity  to  work  with  freedom. 

It  was  well  said  by  Carl  Schurz  on  a recent  occasion,  “that  it  proved  the  strength 
of  this  Nation  that  the  most  important  question  on  wliich  the  last  Congress  divided, 
was  the  question  whether  the  rate  of  interest  that  the  Secretary  of  the  Treasury  might 
be  permitted  to  offer  on  refrmding  the  National  Debt,  should  be  three  or  three  and  one- 
half  per  cent.” 

It  is  a sign  both  of  the  strength  and  of  the  weakness  of  the  Nation  that  in  the 
present  session  of  the  Senate  of  the  United  States,  the  most  important  question  at 
issue  appears  to  be,  what  person  shall  occupy  the  position  of  Sergeant-at-Arms  of  that 
body,  and  dispense  the  patronage  of  that  petty  office. 

The  war  is  ended  and  slavery  is  dead  ; the  new  forces  born  of  hberty  are  recon- 
structing the  late  Slave  States  with  a power  that  no  act  of  Congress  can  much  affect. 
The  wise  policy  of  the  late  Administration  has  given  these  forces  almost  free  play,  and 
their  results  have  been  made  evident  in  the  welfare  of  white  and  black  alike,  such  as 
has  never  been  witnessed  in  the  past,  however  short  it  may  be  of  that  which  will  surely 
be  attained  in  the  future. 

The  interest  of  the  people  demands  general  laws  that  shall  give  equal  opportunity 
to  all ; Congresses  and  Legislatures  spend  year  after  year  in  special  legislation,  hence 
the  greatest  confidence  exists,  and  therefore  the  greatest  progress  is  made,  when  neither 
are  in  session.  If  they  would  spend  their  time  in  removing  the  obstructive  statutes 
that  their  predecessors  have  enacted,  their  sessions  would  be  welcome. 

In  the  last  century  the  inventions  that  have  been  applied  to  textile  manufacturing 
have  reduced  the  work  of  furnishing  all  the  cotton  cloth  that  1,000  inhabitants  of 
this  country,  1,600  Chinese  or  3,200  East  Indians  need  in  a year — to  the  measure  of  the 
labor  of  two  hands  in  the  cotton  field,  one  man’s  work  or  its  equivalent  in  money  to 
move  the  cotton  to  the  factory  and  two  operatives  tending  the  spindles  and  looms — 
only  five  in  all.  A less  proportion  of  each  thousand  can  furnish  ail  the  woolen  fabrics 
needed. 

In  twenty  years  the  improvements  in  the  handling  of  timber  have  reduced  the  labor 
of  conversion  into  boards  and  other  building  material  so  much  that  one  man  is  sure  to 
take  the  place  of  eight  then  employed. 

Who  can  measure  the  potentiality  of  machinery  applied  to  agriculture  ? The  week’s 
ration  of  a Southern  negro,  which  he  chooses  in  preference  to  any  other  food,  is  a peck 
of  meal  and  three-and-a-half  pounds  of  bacon,  worth  at  wholesale  prices  35  to  50  cents. 
One  man  working  a pair  of  horses  in  Iowa  can  work  sixty  acres  of  land,  each  acre  pro- 
ducing sixty  bushels  of  corn  at  sixty  pounds  to  the  bushel,  or  216,000  pounds — 108  tons. 

In  every  art  the  labor  and  drudgery  have  been  reduced  and  the  product  increased, 
while  science  has,  at  the  same  time,  abated  most  of  this  noxious  and  dangerous  con- 
dition of  work. 

The  problems  of  the  future  are  not  how  to  produce  but  how  to  distribute  the  abun- 
dance of  the  field,  the  mine  and  the  factory.  Abundance  and  inteUigence  go  hand  in 
hand,  and  the  measure  in  which  this  assured  abundance  may  be  enjoyed  is  but  the 
measure  of  the  service  that  each  section,  each  State,  or  each  person,  of  our  common 
country  can  render  to  his  neighbor. 

With  each  improvement  in  machinery,  wages  or  earnings  become  larger,  and  the 
hours  of  labor  necessary  to  subsistence  are  diminished ; the  absolute  share  of  the 
capitalist  is  increased,  while  his  relative  share  of  each  year’s  product  is  diminished ; 
on  the  other  hand,  the  share  of  the  laborer  is  increased  both  absolutely  and  relatively. 
The  common  allegation  that  the  use  of  machinery  decreases  employment  and  reduces 
wages  is  without  foundation.  The  “progressive  desires”  that  distinguish  men  from 


By  Edward  Atkinson. 


27 


beasts  bring  new  wants  into  existence,  and  as  the  possibility  for  better  conditions 
of  life  ensues  the  standard  rises  in  respect  to  what  is  necessary  to  a comfortable 
subsistence. 

Imports  continually  increase  as  the  export  of  our  excess  enables  us  to  pay  for  them, 
and  “ the  ships  that  pass  between  this  land  and  that,  are  like  the  shuttle  of  the  loom, 
weaving  the  web  of  concord  among  the  nations.  ” 

Since  the  end  of  the  Rebellion  of  Slavery  against  Liberty,  the  great  forces  of  industry 
and  commerce  have  assured  prosperity  in  spite  of  the  malignant  effects  of  inconvertible 
paper  money,  of  the  constant  attempts  of  Congress  to  tamper  with  the  standard  of 
value,  and  of  State  Legislatures  to  hamper  and  restrict  the  movements  of  trade  by 
means  of  obstructive  and  meddlesome  statutes  applied  to  railroads.  But  the  common 
sense  of  the  people  always  finds  its  exponent,  and  by  the  veto  messages  of  President 
Grant  and  President  Hayes,  some  of  the  most  obnoxious  measures  have  been  stopped, 
while  the  Granger  Acts  applied  to  railway  service  defeated  themselves  as  soon  as  any 
attempt  was  made  to  enforce  them. 

It  only  now  remains  for  legislators  to  learn  that  their  chief  duty  is  to  remove 
obstructions  rather  than  to  attempt  to  impose  conditions  upon  commerce. 

It  is  useless  to  palter  over  names  that  have  ceased  to  represent  ideas  or  facts.  This 
nation  has  a function  in  the  world  that  is  yet  almost  a vision.  There  are  three  economic 
principles  that  it  needs  first  to  learn  before  the  vision  can  be  realized. 

First,  In  this  coimtry  earnings  or  wages  are  limited  only  by  want  of  intelligence, 
skill,  or  industry. 

Second.  The  man  or  woman  that  earns  the  highest  wages  in  the  factory,*  on  the 
farm  or  in  any  department  of  indusiry  in  which  machinery  is  largely  employed  com- 
passes the  largest  production  at  the  lowest  cost. 

Third.  The  State  that  exchanges  the  product  of  its  machinery  and  skill  with 
another  in  which  manual  labor  is  still  the  rule,  gains  most  in  wealth. 

Liberty  under  laws  that  forbid  injustice  and  oppression,  but  leave  the  whole  move- 
ment of  society  perfectly  free,  is  the  condition  under  which  the  greatest  material 
results  can  be  attained.  When  South  and  West  shall  strive  alike,  with  equal  skill  and 
equal  intelligence,  to  do  the  work  best  adapted  to  their  climate  and  soil,  aU  sectional 
antagonism  must  cease,  and  all  alike  shall  'prosper.  In  order  that  this  prosperity 
may  be  most  fully  enjoyed,  it  will  be  necessary  that  the  two  instrumentalities  by 
means  of  which  aU  exchanges  are  made  possible — the  railroads  and  the  banks — shall 
be  relieved  from  the  obstructions  that  ignorance  and  prejudice  combiued  seem  deter- 
mined to  place  in  their  way. 

But  one  thing  more  remains  to  be  considered,  and  that  is,  the  revision  of  the  tariff. 
On  the  one  side  are  the  advocates  of  the  system  of  protection,  who  have  themselves 
petitioned  Congress  to  appoint  a Commission  of  Experts  to  do  the  necessary  work. 
On  the  other  side  are  those  who,  like  the  writer,  believe  that  true  protection  to 
American  industry  would  consist  in  the  gradual  removal  of  all  legal  obstructions  to 
commerce,  but  who  yet  well  know  that  for  many  years  to  come  a tariff  must  be 
maintained  for  the  purpose  of  collecting  a large  revenue  from  customs.  If  once 
this  question  could  be  fairly  reached  and  the  necessary  legislation  secured  for  the 
appointment  of  such  a commission,  a moderate  tariff  might  be  enacted  that  the  reason- 
able men  in  both  these  schools  would  sustain  ; the  country  might  have  a long  period  of 
rest  from  the  danger  of  meddlesome  legislation  upon  this  vexed  question. 

It  would  be  an  interesting  task,  did  time  and  space  permit,  to  add  to  the  computa- 
tion made  in  this  paper  of  the  sum  saved  and  annually  added  to  the  quick  capital  of 
this  country  by  the  service  of  the  railroads — another  computation  of  the  yet  larger 
amount  of  added  capital  that  now  represents  the  increased  efficiency  of  the  annual 
work  of  the  people  of  the  United  States.  It  would  be  safe  to  assume  that,  where  the 


28 


The  Railroad  and  the  Farmer. 


mechanical  work  of  distribution  has  been  reduced  one-half  in  the  last  ten  years  by  the 
service  of  the  railroads,  the  primary  work  of  the  production  of  our  fields  and  of  our 
mines,  and  the  secondary  work  of  manufacturing  their  crude  products  into  other 
forms  ready  for  consumption,  have  been  reduced  at  least  one-fourth  by  the  improve- 
ments in  machinery  and  metallurgy  during  the  same  period. 

As  a productive  unit,  every  man  in  the  United  States  possesses  fully  one-third  more 
power  than  he  did  in  the  year  1866,  when  personal  liberty  had  been  finally  established 
and  forever  assured  in  this  land. 

It  is  this  abundance  of  quick  or  active  capital,  the  product  of  these  new  forces — of 
corn  and  pork,  of  beef  and  bread,  of  iron,  of  cotton,  of  copper,  wool  and  the  like,  and 
all  their  secondary  products — that  is  borrowed  and  lent  by  the  instrumentality  of 
money.  It  is  the  title  to  these  commodities,  measured  in  money,  that  is  deposited  in 
banks  and  that  is  lent  by  their  officers. 

It  is  this  vast  increase  of  actual  substance  that  has  reduced  the  safe  rate  of  interest 
to  only  three  per  cent,  now  where  it  used  to  be  six  or  more. 

Whether  the  rate  that  shall  be  paid  for  the  borrowing  of  this  capital  shall  remain 
at  three  per  cent,  or  even  less,  or  be  advanced  by  its  quicker  and  more  productive  use, 
is  no  longer  a material  question,  but  one  of  intelligence  and  integrity. 

The  field  for  its  use  is  as  broad  as  the  land  itself,  of  which  as  yet  less  than  one-sixth 
part  of  the  arable  portion  fit  for  cultivation  is  under  the  plow,  and  even  that  produces 
only  half  the  crop  that  more  skillful  cultivation  would  give. 

One-half  at  least  of  the  territory  of  the  United  States,  aside  from  Alaska,  is  believed 
to  be  good  arable  land,  exceeding  1,500,000  square  miles,  while  the  area  cultivated  in 
grain,  cotton  and  root  crops  in  1879  was  less  than  225,000  square  miles. 

Who  then  shall  NOT  fully  enjoy  the  use  of  this  new  capital  ? 

First. — The  States  either  South  or  North  that  repudiate  their  debts. 

Second. — The  citizens  of  these  States.  Where  public  integrity  is  not  maintained, 
private  confidence  and  credit  cannot  be  established. 

Third. — The  States  in  which  the  laws  relating  to  the  title  of  land  are  not  simple 
and  well  devised  to  give  security  to  him  who  buys. 

Fourth. — -The  States  in  which  the  laborer  is  not  honored,  and  where  justice  is  not 
accorded  to  rich  and  poor  alike  without  distinction  of  race,  color  or  condition. 

Fifth. — The  cities  in  which  mimicipal  integrity  is  not  assured.  They  may  be  centers 
of  material  wealth  by  the  mere  power  of  their  position,  but  they  wdl  be  in  constant 
danger  until  public  duties  are  as  well  performed  as  the  work  that  is  done  for  private 
gain. 

Sixth, — All  persons  whose  intelligence,  education  or  opportunity  has  not  sufficed  to 
train  them  in  the  use  of  borrowed  capital  in  a way  that  shall  be  f)rofitable  to  them 
and  at  the  same  time  safe  for  the  lenders. 

This  last  exception  of  those  who  cannot  yet  fully  benefit  by  the  greater  power  of 
producing  and  accumulating  capital  is  the  most  material  one  in  the  list.  It  seems 
very  certain  that  the  power  of  accumulating  has  for  the  time  being  outrun  the  power 
of  using,  hence  capital  must  increase  rapidly  in  ratio  to  the  demand,  until  the  general 
standard  of  intelligence  and  education  is  advanced  in  an  equal  degree.  This  will  take 
a long  period,  especially  as  new  forces  are  being  constantly  applied  to  even  greater 
production  and  distribution.  This  country  never  needed  the  world  for  a market  so 
much  as  it  does  now. 

From  this  reasoning  it  may  follow  that  for  a very  long  period  the  rate  of  interest  on 
Government  bonds,  mortgages  and  other  safe  investments  must  be  very  low  indeed. 

Finally  it  may  be  asked  : 

Does  not  the  future  material  prosperity  of  this  nation  depend  solely  upon  the 
character  of  its  people  ? 


By  Edward  Atkinson. 


29 


If  the  mental  and  moral  characteristics  of  the  people  are  equal  to  the  opportunity 
which  they  enjoy,  what  will  be  the  influence  of  this  nation  upon  other  coimtries  ? 

Finally,  there  are  certain  conclusions  that  must  follow  from  the  propositions  sub- 
mitted in  the  foregoing  paper,  of  which  the  following  is  a summary. 

It  has  been  held  that  the  cost  of  railway  seiwice  has  been  reduced  not  less  than  an 
average  of  one  hundred  and  twenty  million  dollars  in  each  year  of  the  last  decade. 
This  is  equivalent  to  a general  relief  from  taxation  to  that  extent,  because  the  things 
moved  by  rail  are  mainly  those  of  universal  and  common  consumption. 

Next  it  has  been  held  that  if  with  this  saving  be  coupled  the  increased  power  of 
production  ensuing  from  the  application  of  more  effective  machinery,  each  human  unit, 
i.  e.,  each  man,  woman  or  child  engaged  in  farming,  mining,  metallurgy,  or  manufac- 
turing, possesses  a potentiality  for  production  at  least  one- third  greater  than  each 
unit  engaged  in  the  same  pursuits  possessed  in  the  decade  previous  to  1870. 

Under  the  application  of  these  great  industrial  and  commercial  forces,  capital  has 
rapidly  accumulated,  and  the  power  of  accumulation  may  now  be  even  greater  than 
the  power  to  use  in  a safe,  well-established  and  customary  manner. 

It  has  been  the  general  conviction  that  it  would  be  useless  to  offer  a United  States 
bond,  payable  at  a fixed  date,  not  to  be  sold  at  less  than  par,  at  any  lower  rate  of 
interest  than  three  and  one-half  per  cent ; but  may  not  the  computations  given  in  this 
paper  lead  to  the  conclusion  that  if  a bond  is  oft'ered  at  three  per  cent.,  not  redeemable 
or  payable  at  a date  fixed,  but  purchaseable  by  the  Government  at  the  market  price 
when  needed  for  the  reduction  of  debt,  such  a bond  may  be  placed  at  par  ; may  there 
not  then  be  greater  assurance  of  its  being  maintained  at  par  than  English  Consols  in 
just  such  degree  as  our  position  is  now  safer  and  stronger  than  that  of  Great  Britain  ? 

This  again  leads  to  another  important  consideration,  to  wit  : the  expediency  of 
ceasing  for  a time  the  rapid  reduction  of  the  debt  of  the  United  States.  There  may  be 
many  reasons  for  adopting  such  a course. 

First. — In  case  the  Supreme  Court  should  righteously  declare  the  reissue  of  legal 
tender  United  States  notes  unlawful,  a large  and  immediate  addition  to  the  circulation 
of  National  Bank  notes  would  be  desirable,  and  such  an  issue  ought  to  be  secured,  like 
the  present  issue,  by  the  deposit  of  United  States  bonds. 

Second. — Nothing  would  more  conduce  to  the  prosperity  of  many  of  the  States, 
especially  many  of  the  Southern  States,  than  the  establishment  of  Savings  Banks 
organized  under  State  laws.  The  taint  of  repudiation,  unfortunately  forbids  recourse 
to  State  or  Municipal  bonds  as  security  for  the  investment  of  trust  funds  in  many 
States,  and  until  State  credit  is  re-established  it  is  very  desirable  that  United  States 
bonds  should  be  available. 

It  may  therefore  be  held  that  the  present  reduction  of  the  debt  of  the  United  States 
should  now  be  checked,  and  should  cease  for  a time,  when  the  total  debt  has  been  re- 
duced to  $1,500,000,000.  This  debt  would  then  consist  of  the  3 per  cent,  consols  now 
proposed,  and  the  remainder  might  consist  of  the  outstanding  4 per  cent,  bonds.  The 
total  interest  would  therefore  be,  in  round  figures,  $54,000,000,  or  about  $22,000,000  per 
annum  less  than  it  was  March  1,  1881. 

The  reduction  of  debt  for  the  year  ending  March  1,  1881,  was  $115,000,000.  It  is 
not  likely  to  be  less  in  any  future  year  under  our  present  system  of  taxation,  as  the 
increase  of  population,  and  the  elasticity  of  the  revenue  that  ensues  therefrom,  will 
fully  offset  the  additional  sums  that  may  be  added  to  the  pension  list  under  the  unwise 
acts  lately  passed. 

The  debt  on  the  1st  of  March  was . . $1,881,000,000 

Before  any  action  can  be  had  to  reduce  the  taxes,  the  debt  may  be, 

January  1,  1882,  below, 


$1,800,000,000 


30 


The  Railroad  and  the  Farmer. 


Assuming  a continuous  surplus  revenue  at  the  rate  of  the  year  ending 
March  1,  1881,  in  which  year  our  interest  was  $77,000,000,  that  is 

to  say,  at  the  rate  of $115,000,000 

Add  thereto  the  interest  to  be  saved  by  the  payment  or  conversion  of 
the  6 and  5 per  cent,  bonds  into  8 per  cent,  consols  in  1881  and  1882, 

say  on  $100,000,000  paid $6,000,000 

Reduction  of  interest  upon  the  balance 11,000,000 

17,000,000 

Available  Surplus $132,000,000 

The  excess  of  revenue  for  the  year  ensuing  after  January  1,  1882,  may  therefore  be 
one  hundred  and  thirty-two  million  dollars. 

If  it  be  then  assumed  that  a reduction  of  debt  of  $32,000,000  per  annum  will  there- 
after be  sufidcient,  a sum  that,  annually  applied,  would  bring  the  principal  of  the  debt 
to  $1,500,000,000  before  1892,  there  would  remain  a further  surplus  of  revenue  of  one 
hundred  million  dollars  per  year,  to  he  applied  by  the  Congress  now  elected,  at  its  next 
session,  beginning  Dec.  1,  1881,  to  the  reduction  of  the  national  taxes  after  Jan.  1,  1882. 

Peace,  order  and  industry,  free  labor  and  free  railroads  have  therefore  brought  this 
nation,  in  sixteen  years  from  the  date  when  nearly  two  million  men  returned  to  the 
pursuits  of  peace  from  the  camps  in  which  they  had  been  gradually  gathered  during 
four  years  of  civil  war,  to  this  point. 

That  it  is  entitled  to  the  highest  credit  of  any  nation  in  the  world,  and  that  its 
legislators  at  the  next  session  of  Congress,  only  eight  months  distant,  may  apply  a 
surplus  revenue  of  one  hundred  million  dollars  to  the  reduction  of  national  taxation. 

May  it  not  therefore  be  hoped  that  the  Senate  of  the  United  States  will  then  have 
determined  the  question  on  which  it  is  now  engaged,  as  to  who  shall  fill  one  or  more  of 
its  petty  offices,  in  order  that  when  it  meets  in  December  it  may  be  prepared  to  give 
some  attention  to  the  fiscal  questions  of  the  future;  in  dealing  with  which  the  reputation 
and  political  standing  of  each  and  all  of  itsmembers  will  be  made  or  marred.  By  that 
time  it  may  be  impossible  to  conceal  incapacity  to  deal  with  the  great  questions  of  the 
future  by  wrangling  over  the  dead  issues  of  the  past. 

This  article  has  been  prepared  simply  as  a study  of  one  of  the  pending  questions  in 
political  science  ; in  presenting  it  to  those  who,  like  myself,  are  especially  interested  in 
the  study  of  political  economy,  I beg  to  call  attention  to  another  phase  of  the  main 
questions  treated  in  this  article. 

It  has  often  been  held  that  the  application  of  machinery  to  agriculture  worked  in 
the  direction  of  large  estates  operated  by  great  capitalists.  This  is  undoubtedly  the 
first  effect  of  machinery  applied  to  almost  unlimited  areas  of  virgin  soil,  as  in  Dakota, 
and  it  may  also  be  true  in  respect  to  lands  that  need  irrigation ; but  this  tendency  is 
only  perceived  in  respect  to  grain  crops.  In  regard  to  all  other  crops,  the  very  reverse 
is  true. 

The  great  crops,  like  the  great  factories,  appeal  to  the  imagination  and  impose 
upon  the  observer.  Wheat,  as  an  aggregate,  assumes  an  immense  importance;  but 
man  does  not  live  by  bread  alone,  and  a barrel  of  flour  a year  more  than  suffices  for 
the  use  of  each  inhabitant  of  this  country.  One  barrel  can  now  be  moved  from  any 
part  of  the  northern  or  central  sections  of  the  United  States  devoted  to  wheat  culture 
to  any  point  on  the  coast,  east,  west  or  south,  for  less  than  a dollar. 

The  very  conditions  of  the  cultivation  of  cotton  and  tobacco  are  converting  the 
Southern  States  into  great  communities  of  small  farmers,  and  the  beneficent  political 
effects  of  this  social  revolution  are  yet  to  appear. 

In  the  North,  again,  but  not  confined  to  it,  a new  force  has  lately  been  developed. 
If  “ Ensilage  ’’  means,  in  fact,  one-half  what  is  claimed  for  it,  it  may  work  social  and 


By  Edward  Atkinson. 


31 


political  changes  in  almost  as  great  a degree  as  the  railroad  itself.  It  begins  to  appear 
that  sixty  pounds  (60  lbs.)  of  ensilaged  maize,  or  other  green  crop,  will  serve  as  the  daily 
ration  of  one  milch  cow  or  one  steer,  if  combined  with  a small  quantity  of  bran  or  of 
cotton-seed  meal.  It  also  appears  that  from  twenty-five  to  seventy-five  tons  of  maize 
can  be  produced  on  a single  acre  in  almost  any  part  of  the  United  States,  that  is  not 
without  the  climatic  area  of  Indian  corn  cultivation  ; that  is  to  say,  833  to  2,500  daily 
rations  to  a single  acre,  of  food  suitable  to  keep  cattle,  hogs  and  poultry  fed  almost 
wholly,  and  horses  fed  in  part,  in  good  and  healthy  condition  the  year  through. 

If  this  be  so,  this  force  works  intensely  in  the  direction  of  small  farms  under  high 
cultivation,  without  implying  very  hard  or  long  hours  of  labor.  From  such  conditions, 
the  following  changes  must  ensue  : — aggregations  of  small  farms  arouud  very  numerous 
central  towns;  a restoration  of  a numerous,  independent  and  intelligent  class  of  prosper- 
ous farmers  in  New  England  and  elsewhere  in  the  eastern  parts  of  the  United  States, 
in  sections  where  agriculture  has  been  somewhat  depressed  by  distant  competition; 
and  a return  to  forms  of  society  like  unto  those  on  which  oar  very  liberties  were 
founded,  but  under  much  less  arduous  conditions. 

The  railroad  at  first  tended  to  segregation,  or  to  a very  wide  diffusion  of  population 
in  the  farming  districts,  but  to  concentration  in  the  manufacturing  States. 

The  various  new  forces  tend  now  to  aggregation,  not  concentration,  under  the  best 
conditions  of  life,  around  common  centres  in  respect  to  agriculture  ; while  the  telegraph, 
the  telephone,  and,  in  yet  greater  measure,  rapid  transit  and  the  transmission  of  power 
by  steam  or  by  electricity  over  long  distances,  must  surely  tend  to  diffuse  the  popula- 
tion of  cities,  now  dwelling  and  working  under  very  bad  conditions,  over  a much  wider 
area  than  has  heretofore  been  consistent  with  the  nature  of  the  occupations  now  con- 
ducted in  cities  ; that  is,  to  aggregation  rather  than  concentration. 

It  would  hardly  be  consistent  with  the  main  purpose  of  this  paper  to  attempt  to 
picture  the  city  of  the  future,  when  it  shall  have  been  reconstructed  under  the  benefi- 
cent infiuence  of  these  new  forces. 

Edward  Atkinson. 

Brookline,  Mass..  April  3,  1881. 


It  may  well  be  alleged  by  the  managers  of  the  railway  service  of  the  country  that 
an  injustice  is  done  to  them  in  limiting  the  comparison  of  the  rates  charged  to  a gold 
standard,  inasmuch  as  the  transactions  of  the  country  have  been  conducted  upon  a 
currency  basis,  and  the  so-called  “ lawful  money  ” has  consisted  of  United  States  notes 
during  the  whole  period  under  consideration,  from  Jan.  1,  1866,  to  Jan.  1,  1879,  when 
the  difference  between  theie  notes  and  gold  coin  was  removed.  In  fact,  it  is  true  that 
all  transactions  except  the  payment  of  interest  on  the  public  debt  and  the  collection  of 
duties  have  been  in  currency,  and  the  true  measure  of  the  saving  brought  about  by  the 
railway  service  should  be  stated  in  dollars  of  lawful  money. 

The  average  rate  charged  upon  the  New  York  Central  & Hudson  River  R.R.,  from 
1866  to  1869,  inclusive,  w-as  2.7058  cents  per  ton  per  mile  ; from  1870  to  1879,  inclusive 
1.2164  cents  per  ton  per  mile  ; difference,  1.4894  cents.  At  this  rate  of  difference  the 
saving  on  14,353,521,585  tons  carried  one  mile  w^as 

$213,781,350. 

As  has  been  stated,  this  line  has  performed  one-twentieth  part  of  the  railway  service 


32 


The  Railroad  and  the  Farmer. 


of  the  United  States  during  this  period.  If  we  multiply  the  saving  on  this  line  by 
twenty  the  quotient  is 

$4,275,627,000, 

a sum  more  than  equal  to  the  money  cost  of  the  Civil  War  to  the  people  of  the  United 
States. 

But  it  is  not  probable  that  the  rate  of  reduction  on  all  lines  has  been  equal  to  that 
on  the  N.  Y.  Central.  The  reduction  that  can  be  proved,  however,  and  will  he  prov- 
able, when  “ Poor’s  Manual”  of  1881  is  issued,  is  fully  three-fourths  of  this  sum — that 
is  to  say, 

$3,206,720,250, 

or  an  average  of  three  hundred  and  twenty  million  dollars  a year  for  ten  years,  from 
1870  to  1879,  inclusive. 

The  revenue  of  the  United  States  from  all  sources  during  the  same  period  has  aver- 
aged three  hundred  and  seventeen  million  dollars  a year. 

The  claim  that  the  railway  managers  may  therefore  present  and  substantially  prove 
is,  that  they  have  made  such  a reduction  in  their  charge  for  moving  merchandise 
during  the  past  ten  years  as  to  have  equaled  the  sum  levied  upon  the  people  of  the 
United  States  during  the  same  period,  for  the  payment  of  National  Expenses  as  well 
as  for  the  reduction  of  the  National  Debt. 

There  is  one  other  aspect  in  which  the  saving  that  has  been  compassed  in  the  cost 
of  moving  merchandise  by  railroad  can  be  presented.  It  is  perhaps  superfluous,  but  yet 
meets  a comment  that  has  often  been  made,  especially  in  England,  namely,  that  we 
were  converting  our  quick  capital  into  fixed  investments  in  this  country  with  too  great 
rapidity,  especially  in  the  construction  of  railroads. 

The  panic  of  1873  has  been,  without  sufficient  reason,  attributed  to  this  cause  ; and 
some  predictions  of  other  difficulties  of  like  kind  have  been  made  affecting  the  present 
time. 

We  may  therefore  present  the  case  in  the  following  manner  : There  will  probably 
be  constructed  within  the  limits  of  the  United  States,  in  the  year  1881,  eight  thousand, 
perhaps  ten  thousand,  miles  of  new  railroad.  Their  average  cost  may  be  computed  at 
$25,000  per  mile.  The  total  expenditure  may  therefore  reach  ($250,000,000)  two  hundred 
and  fifty  million  dollars. 

It  has  been  said  previously  that  railroad  begets  railroad  ; and  we  may  now  make  the 
following  almost  incredible  statement : Computing  the  rates  again  in  gold  coin  for 
both  periods,  we  find  that  the  reduction  in  the  charge  for  moving  merchandise  in  the 
year  1879,  as  compared  to  the  years  1866  to  ’69  inclusive,  on  the  New  York  Central  and 
Hudson  River  Railroad,  amounted  to  $26,650,000  for  the  work  done  by  this  single  line 
in  that  single  year,  1879. 

As  has  been  stated,  this  road  performed  one-twentieth  part  of  the  railroad  service 
of  the  United  States  in  the  year  1879. 

If  we  therefore  multiply  the  sum  saved  by  20  we  reach  an  aggregate  of  $533,000,000. 

Let  us  admit,  in  order  to  cover  contingencies,  that  the  reduction  on  other  lines  has 
been  only  one-half  that  on  the  line  named,  which  is  yielding  altogether  too  much  for 
the  sake  of  a safe  computation,  and  we  reach  a saving  in  the  year  1879  of  $266,500,000  ; 
in  other  words,  a sum  sufficient  to  cover  the  entire  cost  of  the  construction  of  1880,  with 
a large  surplus  over. 

Assuming  that  the  saving  in  1880  was  substantially  the  same  in  ratio  to  the  price 
of  commodities  as  in  1879,  and  it  appears  that  the  sum  saved  on  last  year’s  work, 
namely,  1880,  will  suffice  to  build  the  ten  thousand  miles  now  under  construction  in  1881. 

It  would  therefore  follow  that  the  conversion  of  quick  capital  into  fixed  railroad 


By  Edward  Atkinson. 


33 


investments  will  not  be  likely  to  create  a commercial  crisis  at  present,  except  so  far 
as  its  expenditure  in  unprofitable  lines,  or  on  a merely  speculative  basis,  may  create 
distrust  even  in  respect  to  other  lines  that  are  needed.  The  saving  compassed  by  ex- 
isting lines  as  compared  to  the  period  1866  and  1869  is  sufiicient  to  cover  the  cost  of 
the  apparently  excessive  construction  of  the  present  time.  In  this  connection  it 
should  be  remembered  that  the  construction  of  new  lines  works  a yet  greater  saving, 
because  it  substitutes  the  service  of  the  rail  for  the  service  of  the  wagon. 

The  most  conspicuous  example  of  the  saving  compassed  by  this  latter  change  may 
be  found  in  the  case  of  the  Central  and  Union  Pacific  Railroad.  The  saving  in  the  cost 
of  moving  supplies  for  the  Government  of  the  United  States  as  compared  to  the  rates 
that  were  paid  to  wagon-trains  before  their  completion,  long  since  exceeded  the  entire 
amount  of  the  bonds  of  the  United  States  that  were  lent  to  these  two  corporations  to 
aid  in  their  construction. 

In  fact,  from  whatever  point  and  in  whatever  aspect  the  service  of  the  railway  is 
considered,  it  becomes  evident  that  it  has  been  the  prime  factor  in  enabling  the  people 
of  this  country  to  overcome  the  losses  of  the  civil  war,  in  enabling  the  Government  to 
resume  specie  payment,  and  in  establishing  prosperity  on  a solid  basis. 

Edward  Atkinson. 

Brookline,  Mass.,  May  5,  1881. 


The  following  letter  from  Mr.  Atkinson  deserves  a place  hero,  and  we 
publish  it. — [Ed. 

Boston,  Sept.  21, 1881. 

J.  H.  Reall,  Esq. , Editor. 

Dear  Sir:— Your  letter  of  the  19th  has  been  received;  and  I am  obliged  to  you  for  your  courtesy  in 
submitting  to  me  the  manuscript  of  an  article  by  Mr.  L.  E.  Chittenden,  which  purports  to  be  a reply  to  my 
article  contained  in  your  first  number  upon  the  ^‘Railroad  and  the  Farmer.” 

As  to  the  propriety  of  publishing  an  article  which  is  greatly  marred  by  its  personal  allusions,  its 
mis-statements  of  my  position,  and  of  my  argument,  you  will  be  the  judge,  and  not  I. 

I am  greatly  disappointed  that  you  have  not  been  able  to  obtain  a judicious  and  able  statement  of 
the  argument  in  favor  of  State  interference  with  the  conduct  of  railroad  service,  and  State  regulations  of 
the  rates  of  traffic. 

The  writer  of  this  article  appears  to  me  to  waste  a great  deal  of  time  and  space  in  rather  a feeble 
treatment  of  the  legal  power  of  the  National  and  State  Government  to  aFempt  such  regulations  as  have 
been  proposed  by  what  has  been  curiously  named  as  the  “Anti-Monopoly  League.” 

So  far  as  this  article  was  intended  to  be  a reply  to  m'ne,  this  portion  of  it  is  entirely  out  of  place,  as 
I have  not  contested  the  power,  either  of  Congress  or  of  the  States,  to  pass  such  act  if  they  so  elect. 

The  point  of  my  argument  is,  that  such  acts,  if  passed,  will  do  more  harm  than  good,  and  will  not 
reach  the  difficulty. 

It  is  much  to  be  regretted  that  Judge  J.  S.  Black  had  not  given  his  attention  exclusively  to  this  legal 
argument,  and  had  not  presented  it  with  the  ability  of  which  he  is  capable,  without  attempting  to  enter  i 
into  the  discussion  of  the  facts,  in  which  discussion  he  has  been  so  far  misled  by  the  fallacious  statements 
wMch  were  evidently  prepared  for  his  use  by  some  incapable  person,  that  ms  whole  case  has  become 
absurd  and  ridiculous,  and  does  not  even  call  for  the  attention  which  his  known  ability  would  otherwise 
warrant. 

The  writer  of  the  present  article,  the  publication  of  which  we  are  now  considering,  appears  to  be 
unaware  that  although  I have  myself  never  been  connected  with  the  management  of  any  railroad,  and 
have  had  very  slight  personal  interest  in  their  ownership,  I have,  on  the  other  hand,  conducted  a large 
business,  in  which  I have  obtained  intimate  knowledge  of  their  methods,  and  have  been  called  upon  to 
pay  many  hundred  thousand  dollars  of  freight  money.  I am  not  sure  that  it  might  not  amount  to  two  or 
three  millions  on  the  cotton  which  I have  been  charged  with  the  receipt  of  during  the  last  thirty  years. 

I probably  have  much  more  accurate  knowledge  than  any  member  of  the  legal  profession  could 
possibly  attain  in  respect  to  differential  rates,  discriminations,  and  other  matters  connected  with  the  rail- 
road traffic. 

I have  had  occasion  to  protest  against  excessive  charges  on  short  routes,  and  am  perfectly  familiar 
with  aU  the  faults  alleged  by  the  members  of  the  so-called  Anti-Monopoly  League. 

The  result  of  this  practical  experience  is  mainly  what  has  led  me  to  the  conclusions  presented  in  the 
“ Railroad  and  the  Farmer,”  and  to  an  utter  distrust  of  all  attempts  to  regulate  railroad  traffic  by  legis- 
lation. 

I have  never  foimd  any  difficulty  in  obtaining  an  adequate  remedy  within  a reasonable  time  by 
making  proper  representations  and  using  reasonable  tact  in  the  management  of  the  business. 

In  some  cases,  what  appeared  to  be  unjust,  discriminating  charges,  have,  when  examined,  proved  to- 
be  perfectly  reasonable  and  proper. 

You  ask  me  to  respond  to  the  paper  submitted  by  Mr.  Chittenden. 

I should  have  been  glad  to  do  so,  even  in  spite  of  its  offensive  and  persona,  one,  out  Ido  not  find 
any  sufficient  substance  in  the  paper  to  which  I can  respond. 

Whenever  you  can  obtain  either  a critical  review  of  my  own  statement  of  facts,  or  a carefully  pre- 
pared argument  upon  the  other  side,  based  on  testimony  and  proved  by  citations  of  fact,  I may  find  it  a 
matter  of  interest  to  respond. 

Until  then  I beg  you  to  be  satisfied  with  my  paper  as  it  now  stands,  and  am  glad  to  know  that  it  has 
'.xcited  sufficient  interest  to  induce  you  to  reprint  it  Yours  very  truly,  Edward  Atkinson. 


BALL 

^4DEQU_ATE  E AILAVAY  SERVICE. 

drawer  Ho. 

- Jjramung  Ho. 

EDWARD  ATKINSON. 


When  the  Massachusetts  Central  RR.  is  completed,  of  which  a portion  is  now  open, 
the  Commonwealth  of  Massachusetts  will  possess  more  miles  of  railway  in  ratio  to  its 
area  than  any  other  State  or  country  in  the  world. 

The  completion  of  this  line  in  the  year  1881  will  make  our  railway  mileage  more 
than  1,950  miles  in  a territory  of  7,800  square  miles,  or  one  linear  mile  to  each  four 
square  miles  of  territory. 

If  we  may  assume  that  this  is  a fairly  adequate  service  to  meet  our  present  need, 
we  may  establish  it  as  a standard,  or  100  per  cent.  For  the  purpose  of  comparison  by 
the  graphical  method  previously  adopted  in  the  article  on  “The  Railroad  and  the 
Farmer  ” (to  which  this  is  an  appendix),  we  will  define  the  standard  of  100  per  cent,  by 
this  formula: — 

MASSACHUSETTS  RAILROADS  IN  1881— COMPLETE. 

1 MILE  OF  RAILWAY  TO  4 MILES  OF  AREA,  100  PER  CENT. 

The  following  table  shows  the  ratio  of  the  railway  service  of  the  United  States  and 
Europe  to  this  standard  of  adequate  service,  the  miles  of  railway  in  operation  being 
taken  from  “ Poor’s  Railroad  Manual  of  1881,”  with  some  slight  variations  as  to  Euro- 
pean States,  derived  from  “ Martin’s  Year  Book  of  1881.” 

It  would  be  interesting  to  compare  the  miles  of  railroad  with  the  population  of 
these  several  States,  but  the  table  would  need  to  be  changed  every  month,  as  in  our 
Western  States  and  Territories  the  railroad  leads  and  makes  the  way  for  the  incoming 
population,  while  in  Europe  the  practice  is  the  reverse. 

In  “ Poor’s  Manual  ” the  miles  of  railway  stated  to  be  in  operation  in  Texas  at  the 
end  of  1880  numbered  3,293.  The  Galveston  News  computes  4,389  in  operation  Sept.  1, 
1881.  The  number  of  miles  chartered  since  Sept.  1,  1880,  many  of  which  are  in  pro- 
gress, comprise  more  than  5,000  additional  miles.  It  thus  appears  that  the  railway 
mileage  of  Texas  is  extending  more  rapidly  than  the  population  increases,  and  may  con- 
tinue to  do  so  for  some  time  to  come.  The  same  rule  holds  with  respect  to  all  our  prin- 
cipal Territories.  The  railway  precedes  population,  gives  value  to  land,  and  creates  its 
own  traffic.  It  may  be  observed,  also,  that  the  pioneer  crops  upon  the  land  thus  opened 
are  bulky,  and  require  railroads  in  order  to  be  moved.  They  consist  of  grain  and  meat, 
of  ores  and  timber,  or  of  wool  and  hides.  The  occupations  of  the  new  settlers  are  there- 
fore of  a kind  that  give  a large  quantity  of  traffic  for  a small  number  of  persons.  Hence 
' the  measure  of  miles  of  railroad  to  population  might  be  a more  fallacious  standard  than 
, the  comparison  to  relative  areas.  But  neither  standard  can  be  taken  as  an  absolute 
one,  and  the  only  purpose  of  the  present  computation  is  to  present  some  rather  inter- 
esting facts,  and  to  make  a rough-and-ready  estimate  of  what  increase  in  railway  ser- 
vice we  may  need  in  the  immediate  future,  and  also  to  prove  how  easily  we  may  meet 
this  need  as  it  comes,  be  it  greater  or  less. 


The  Standard  of  Adequate  Eailway  Service. 


35 


Subject  as  such  statistics  are  to  the  quahfications  stated,  we  may  yet  affirm  that 
there  is,  perhaps,  no  single  standard  by  which  the  progress  of  a State  or  Nation 
may  be  more  accurately  measured  than  by  a full  consideration  of  its  means  of  com- 
munication. In  former  times  the  standard  was  the  highway;  next  came  the  canal; 
and  now  it  is  the  railroad. 

Of  course  this  rule  is  subject  to  many  exceptions;  for  instance,  it  is  not  fair  to 
compare  Maine  to  Massachusetts,  because  of  the  vast  area  of  territory  in  the  former 
State,  which  is  at  present  unoccupied  if  not  uninhabitable.  Neither  would  it  be  just 
to  apply  this  rule  to  Norway  and  Sweden,  or  to  like  countries  where  mountain  ranges 
are  a barrier  to  railway  service.  In  such  a State  as  the  Netherlands,  also,  the  vast 
network  of  canals  needs  to  be  considered  in  addition  to  the  railroaas. 

But  after  all  suitable  qualifications  have  been  made,  it  will  be  perfectly  apparent 
that  the  extension  of  the  railway  service  is  a tolerably  fair  and  just  measure  of  the  in- 
teUigence  of  the  people,  and  of  their  freedom  from  the  burthen  of  standing  armies  or 
from  the  curse  of  slavery. 

It  will  be  an  interesting  study  to  reconstruct  this  table  in  1891,  and  then  to  mark 
the  progress  of  the  Southern  States  ; then  can  be  measured  the  first  decade  of  genuine 
progress  on  which  these  States  are  just  now  entering,  and  it  wih  be  seen  in  what 
degree  liberty  may  have  enabled  the  old  Slave  States  of  the  South  to  overtake  their 
younger  sisters  in  the  West. 

Is  there  not  a lesson  in  these  facts,  that  among  European  States,  England  and 
Wales,  Belgium,  Switzerland,  and  Scotland,  the  four  States  which  enjoy  the  greatest 
freedom  or  the  most  adequate  system  of  education  also  possess  the  most  adequate  rail- 
way service  ? Even  Ireland,  under  English  rule,  exceeds  France.  Germany  is  far  in 
advance  of  Austria,  Italy,  Spain,  and  Eussia.  All  the  great  States  of  Europe,  which 
have  wasted  their  substance  in  sustaining  standing  armies,  and  which  have  built  up 
barriers  to  trade  in  the  shape  of  hostile  tariffs,  stand  far  below  our  own  States  of  the 
free  North. 

Mark,  once  more,  that  among  our  own  States,  in  just  the  measure  in  which  they 
have  wasted  their  substance  in  slaves  have  they  been  deprived  of  railroads.  The 
Border  States  suffered  the  least,  but  in  just  equal  proportion  to  the  darkness  of  the 
pall  of  slavery  has  been  the  privation  of  railroads  in  the  Cotton  States. 

The  free  young  State  of  Iowa  is  far  in  advance  of  her  neighbor,  Missouri.  The  Ger- 
mans, who  constitute  so  large  an  element  of  the  population  of  Iowa,  have  already  pro-"> 
vided  themselves  with  better  means  of  communication  than  the  fatherland  enjoys.  The 
Scandinavians  of  Wisconsin  and  Minnesota  have  more  than  double  the  railway  service 
of  the  countries  whence  they  came;  but  Virginia,  crippled  by  slavery,  notwithstanding 
its  vast  resources,  lags  far  behind,  and  only  finds  poor  company  with  Austria  and  Italy. 
Kansas,  hardly  yet  of  age,  stands  even  with  Georgia,  the  most  progressive  of  the  Cotton 
States.  Nebraska,  younger  yet,  already  leads  Mississippi,  while  Texas,  also  held  back 
by  slavery  until  recent  times,  will  yet  soon  pass  up  the  column,  and  has  already  escaped 
the  comparison  with  Turkey,  below  which  country  she  stood  last  year. 

There  is  another  aspect  of  this  question,  which  possesses  great  interest.  Massachu- 
setts has  now,  including  the  Massachusetts  Central  line,  a part  of  which  has  just  been 
opened,  one  hnear  mile  of  railway  to  each  four  square  miles  of  territory;  yet  a large 
portion  of  the  State  is  mountainous  or  sterile,  and  does  not  need  railway  communication 
to  one-half  the  extent  in  which  such  service  will  be  called  for  in  the  near  future  in  many 
other  States.  When  we  consider  the  wealth  of  minerals  in  the  mountain  sections  of  the 
Middle  States,  and  of  many  of  the  Southern  States,  and  the  agricultural  potentiahties 
of  the  West,  it  must  surely  happen  that  very  many,  if  not  all,  the  present  States  of  the 
Union  will  ultimately  demand  railroads  equal  to  Massachusetts,  and  that  their  con- 
struction will  be  profitable.  The  following  table  wiU  therefore  give  some  idea  of  the 
immediate  future  of  railway  construction,  if  the  States  named  may  be  assumed  to 


L • 


36 


The  Standard  op  Adequate  Railway  Service. 


have  the  need  of  railways  in  the  proportions  indicated,  the  present  service  of  the  State 
of  Massachusetts  being  the  standard. 

In  establishing  these  ratios  in  this  rough-and-ready  way,  consideration  has  been  given 
to  the  general  configuration  of  the  several  States  and  Territories,  to  the  probability  of 
diversity  of  occupation,  to  climate,  and  in  some  measure  to  relative  fertility  Of  course 
the  divisions  are  very  general,  and  can  only  give  an  approximate  idea  of  the  future 
construction. 

It  will  be  seen  that  about  117,500  miles  of  new  railroads  may  be  required,  which,  at 
the  rate  of  construction  of  the  year  1881,  will  occupy  the  next  fifteen  years.  It  would, 
however,  be  safer  to  consider  twenty  years  as  the  period  which  will  be  needed  for  this 
construction,  as  we  may  assume  at  least  one  commercial  crisis  and  a railway  panic  in 
the  next  seven  years,  by  which  our  progress  may  for  a time  be  a little  checked. 

The  States  and  Terrritories  are  divided  into  five  classes.  Class  I.  is  assumed  to  need 
very  soon  a railway  service  equal  to  that  of  Massachusetts  at  the  present  time,  to  wit, 
one  mile  to  four  square  miles;  Class  II.,  one-half  as  much,  or  one  to  eight;  Class  III., 
one-quarter  as  much,  or  one  to  sixteen;  Class  IV.,  one-eighth  as  much,  or  one  to  thirty- 
two;  Class  V.,  the  present  Territories,  one-sixteenth,  or  one  mile  of  railway  to  each 
sixty-four  miles  of  territory: — 

Massachusetts In  1881 1950  miles  = 100  per  cent. 

Class  I. — 1 mile  to  4 square  miles. 


Miles  in 
operat'n 
Jan.  1, 
1881. 


Needed. 

Total, 
say  A.  D. 
1900. 

116 

326 

233 

1,187 

5,731 

11,750 

379 

2,080 

5,257 

11,500 

250 

530 

1,769 

2,781 

4,079 

9,991 

3,998 

8,452 

5,898 

13,853 

8,526 

13,761 

76,211 

Rhode  Island. 
Connecticut . . 

New  York 

New  Jersey.. 
Pennsylvania 
Delaware  — 

Maryland 

Ohio 

Indiana 

Illinois 

Iowa 


39,975 


210 

954 

6,019 

1,701 

6,243 

280 

1,012 

5,912 

4,454 

7,955 

5,235 


36,236 


Class  II. — 1 mile  to  8 square  miles. 


New  Hampshire 

Vermont 

Michigan 

Wisconsin 

Missotui 

Virginia 

West  Virginia... 
South  Carolina.. 

Georgia 

Kentucky 


21.081 


1,015 

145 

912 

365 

3,931 

3,125 

3,130 

3,610 

4,011 

4,158 

1,826 

2,967 

694 

2,181 

1,429 

2,821 

2,535 

4,715 

1,598 

3,112 

27,199 

48,280 


'1,160 

1,277 

7,056 

6,740 

8,169 

4,793 

2,875 

4.250 

7.250 
4,710 


By  Edward  Atkinson. 


37 


Class  III. — 1 mile  to  16  square  miles. 


Miles  in 
operaVn 
Jan.  1, 
1881. 

Needed. 

Total, 
say  A.  D. 
1900. 

3,108 

2,113 

5,221 

2,000 

2,750 

4,750 

^8fIlS3<S 

3,439 

1,617 

5,056 

Nortli  C3<roliii3< 

1,499 

1,671 

3,170 

1,824 

1,026 

2,850 

IWicciciQi'nTii  ^ ••••  •••• 

1,183 

1,767 

2,950 

A 1 Q V^QTTIQ  . 

1,851 

1,319 

3,170 

^ rlrfl.TiRfl.fi  

896 

2,366 

3,262 

XjOTlisi3<IlB« 

633 

1,952 

2,585 

nPpTTfl.C!  

3,293 

13,854 

17,147 

Indifin  Tprrit-^^y  wt  ti-  - 

275 

4,037 

4,312 

20,001 

34,472 

54,473 

Maine  — 
Nevada... 
Colorado  . 
Oregon... 
California 


Class  TV. — 1 mile  to  32  square  miles. 

1,013 


769 

1,531 

582 

2,220 


6,115 

Class  V. 


9,652 


81 

2,731 

1,734 

2,395 

2,711 


15,767 


1,094 
3,500 
3,265 
' 2,977 
4,931 


Assuming  these  railways  to  be  completed,  either  in  the  States  to  which  the  new 
mileage  has  been  assigned  or  in  some  others,  the  proportion  of  the  total  mileage  (209,000) 
to  the  area  of  the  United  States  (omitting  Alaska),  will  then  be  only  one  mile  to  about 
fifteen  square  miles.  In  other  words,  the  United  States  (omitting  Alaska)  would  then 
be  about  one-quarter  as  well  served  as  Massachusetts  now  is. 

Assuming  that  these  roads  will  cost,  upon  the  average,  at  the  beginning,  $35,000 
per  mile,  the  expenditure  will  amount  to  $4,112,500,000,  or  about  two  hundred  and 


38 


The  Standard  of  Adequate  Railway  Service. 


seventy-five  million  dollars  a year  for  fifteen  years — a sum  which  can  be  readily  spared, 
as  will  appear  if  we  compare  it  with  the  annual  saving  that  has  been  made  by  the  exist- 
ing railway  service  in  the  last  ten  years.  It  may  also  be  remarked  that  the  cost  of 
our  civil  war,  measured  in  money,  was  just  this  sum  of  $4,100,000,000. 

One  point  may  weU  be  considered  in  this  connection.  It  would  be  a very  false 
economy  if  these  new  lines  were  not  laid  with  steel  rails,  on  which  the  present  duty 
is  $28  per  ton,  over  100  per  cent.  It  may  be  safely  assumed  that  if  iron  ores  are  made 
free,  and  the  duty  on  steel  rails  reduced  one-half,  the  protection  then  afforded  would 
be  excessive,  but  the  saving  on  the  cost  of  these  projected  lines  would  be,  at  100 
tons  per  mile,  $1,400,  or  on  117,500  miles  $164,500,000. 

This  estimate  of  117,500  miles  of  railroad  to  be  constructed  in  fifteen  to  twenty 
years  may  be  somewhat  startling,  and  it  may  be  alleged  that  the  capital  cannot  be 
found  for  it ; it  will  therefore  be  well  to  analyze  it  and’  to  reduce  it  to  terms  of  labor  or 
day’s  work. 

A fair  estimate  of  the  prime  cost  of  an  average  mile  of  single-track  railroad, 
equipped  in  such  manner  as  to  begin  to  develop  the  country  through  which  it  runs,  so 
that  it  will  further  develop  itself  out  of  its  own  earnings,  may  be  set  at  $35,000  per 
mile.  This  is  sometimes  considered  too  low,  but  it  is  intended  to  include  only  a fair 
cost,  without  admitting  contractors’  profits  or  other  charges.  It  may  be  assumed  that 
this  amount  is  the  measure  of  good  work  actually  performed. 

At  this  rate  the  amount  of  capital  expended  will  be  $275,000,000  a year  for  fifteen 
years,  at  an  average  of  7,800  miles  a year.  In  the  original  article  on  the  Railroad 
and  the  Farmer,  the  proof  of  the  saving  in  the  service  of  existing  railways  of  a greater 
sum  than  this,  as  compared  to  the  charges  of  only  fourteen  years  since,  has  already 
been  submitted,  and  there  is  yet  a large  measure  of  saving  now  being  compassed, 
especially  in  the  construction  and  consolidation  of  Southern  lines. 

But  a better  proof  of  our  ability  to  meet  this  expenditure  may  consist  in  a yet 
closer  analysis.  Assuming  $350,000  as  the  cost  of  100  miles  of  railroad,  let  us  see  what 
labor  this  sum  measures.  The  force  required  consists  of  the  officers  of  the  corporation, 
the  engineers,  surveyors,  and  their  assistants,  the  managers  of  mines  of  coal  and  iron, 
of  rolling-mills  and  of  machine-shops  :^or  engine  and  car  construction,  aU  of  whom 
earn  from  $2  to  $20  per  day.  i 

The  next  class  consists  of  the  skilled  miners,  iron-workers,  rolling-mill  men,  ma- 
chinists, car-builders  and  other  first-class  mechanics,  all  of  whom  earn  from  $2.50  to 
$6  per  day.  X 

Last  we  have  the  track-layers,  navvies,  lumbermen,  and  all  the  common  laborers 
who  work  in  the  mines,  shops,  or  in  the  construction  of  the  line,  all  of  whom  earn 
from  $1  to  $3  per  day.  The  last  is  of  course  the  most  numerous  class. 

It  is  impossible  for  the  writer  to  determine  the  proportion  of  these  several  classes, 
but  if  we  assume  an  average  of  two  dollars  per  day  for  the  whole  force,  we  have  prob- 
ably set  the  rate  too  low.  At  this  rate,  however,  computed  for  312  working  days,  each 
100  miles  of  railroad  will  represent  the  labor  of  5,600  men.  The  labor  of  constructing 
7,800  miles  a year  will  require  a force  of  436,800  men. 

WHILE  EUROPE  PREPARES  FOR  WAR  WE  PREPARE  FOR  WORK. 

If  the  United  States  sustained  a standing  army,  equal  in  proportion  to  our  present 
population,  to  those  of  Europe,  omitting  Russia,  our  army  in  active  service,  taking  no 
consideration  of  reserves,  would  number  over  500,000  men. 

If  our  army  were  equal  to  those  of  France  and  Germany,  now  actually  in  camp 
and  barrack,  it  would  consist  of  600,000  men  on  the  peace  footing,  while  our  reserves 
would  consist  of  twice  that  number. 

Germany  and  Italy  are  struggling  with  widespread  poverty,  and  nothing  but  the 


By  Edward  Atkinson. 


39 


sordid  economy  of  the  French,  coupled  with  long  and  arduous  hours  of  unremitting 
labor,  especially  for  women,  saves  France.  We  may  well  ponder  upon  the  trials  which 
Europe  must  endure,  and  wonder  what  may  be  the  influence  of  this  country  when  the 
next  census  is  taken,  and  when  our  stalwart  army  of  peace  shall  have  increased  our 
railway  mileage  from  100,000  to  nearly  200,000  miles.  Well  may  we  watch  with  the 
utmost  jealousy  every  measure  which  can  in  any  degree  obstruct  the  progress  of  this 
prime  factor  in  our  beneflcent  power  as  a nation. 

Even  after  the  hundred  and  seventeen  thousand  miles  of  new  railways  have  been 
constructed  to  meet  the  requirements  presented  in  this  paper,  there  will  remain  innu-  ! 
merable  cross-roads  and  branches  and  tramways  to  be  built,  especially  in  the  prairie  !" 
States,  where  material  for  good  highways  is  wanting.  If  any  additional  reasons 
were  needed  to  prevent  the  adoption  of  meddlesome  and  obstructive  statutes,  the 
writer  hopes  they  may  be  found  in  these  considerations. 

This  computation  of  the  future  need  of  other  States  for  railway  service  may  be 
considered  extravagant.  It  may  be  held  that  very  few,  if  any,  other  States  will  be  so 
densely  populated  within  the  present  century  as  Massachusetts  is  now,  and  it  may  also 
be  held  that  a State  requires  railway  service  in  ratio  to  its  manufacturing  and  mechan- 
ical employments,  in  which  pursuits  it  may  be  said  that  other  States  may  not  for  a 
very  long  period  emulate  Massachusetts.  Each  person  who  scans  the  table  will  take 
some  exception  to  it,  alleging  that  in  this  or  that  State  or  Territory  the  computation  is 
fallacious  ; or  it  may  be  said  that  States  upon  the  seaboard,  where  through  lines  con- 
centrate, need  more  miles  in  ratio  to  their  area.  All  this  may  be  admitted,  but  as  the 
cost  of  constructing  railroads  may  yet  be  very  much  diminished,  and  the  cost  of 
operating  in  greater  measure,  will  not  the  demand  increase  ? What  considerable  town 
or  section  will  be  content  to  remain  without  a railroad  connection  even  if  its  branch 
will  only  pay  the  cost  of  operating  it  ? When  all  the  qualifications  have  been  taken 
into  consideration,  will  not  the  construction  of  the  next  sixteen  far  exceed  the  work 
of  the  past  sixteen  years,  in  which  we  passed  through  the  long  period  of  depressio^ 
caused  by  our  paper  currency  ? 

The  case  may  also  be  presented  in  another  aspect : The  excess  of  the  revenue  of 
the  United  States,  over  and  above  ordinary  expenses  and  interest,  is  now  about  one 
hundred  and  fifty  million  dollars  a year.  The  next  Congress  may,  therefore,  remove 
the  burthen  of  one  hundred  million  dollars  of  national  taxation  a year,  and  yet  leave 
surplus  enough  to  pay  the  whole  debt  of  the  nation  before  the  century  ends.  ^ 

The  sum  which  we  may  therefore  remove  from  our  taxes  by  one  act  is  about  equal 
to  the  cost  of  sustaining  the  standing  army  of  France  or  Germany,  and  is  more  than 
one- third  the  computed  annual  cost  of  doubling  our  railway  service  in  fifteen  years. 

It  may  well  be  asked  whether  the  nations  of  Europe,  burthened  with  standing  armies, 
wasting  the  best  years  of  their  lives  in  idleness  at  the  cost  to  each  50,000,000  of  their 
population  in  taxes  of  more  than  the  sum  which  we  might  remove  by  one  simple  act 
of  legislation,  can  expect  to  retain  the  control  of  the  great  commerce  of  the  world 
against  our  competition. 

If  the  Congress  which  meets  in  December  should  dare  to  enact  a law  to  this  effect: 
— “ On  and  after  June  30,  1882,  aU  taxes  imposed  upon  the  people  of  the  United  States, 
either  under  the  Internal  Revenue  law  or  under  the  laws  for  the  collection  of  duties 
upon  imports,  shall  be  subject  to  a discount  of  ten  per  cent. ; after  June  30,  1883,  to  an 
additional  discount  of  ten  per  cent.,  and  after  June  30,  1884,  to  an  additional  discount 
of  ten  per  cent.,”  the  revenue  could  well  be  spared. 

These  successive  discounts  on  the  present  schedules  of  taxation  would  work  a re- 
lief to  the  amount  of  over  one  hundred  million  dollars  a year  after  the  third  discount 
of  ten  per  cent,  had  taken  effect.  In  the  meantime,  the  proposed  commission  for  the 
revision  of  tlie  whole  system  of  national  taxation  would  be  doing  its  work.  This 


tv 


40 


The  Standard  op  Adequate  Railway  Service. 


mode,  however  unscientific,  would  yet  avoid  all  contention,  and  would  be  impartial 
and  equitable. 

The  proportion  of  the  present  taxes  removed  would,  at  the  expiration  of  the  three 
years — when  the  discount  would  be  thirty  per  cent. , amount  to  a sum  more  than  equal 
to  the  money  cost  of  the  largest  single  standing  army  of  Europe,  and  would  also  be 
nearly  equal  to  the  amount  required  to  constnict  over  3, 000  miles  of  railway  in  each  year, 
or  one-half  the  number  of  miles  required  to  double  our  railway  service  in  sixteen  yearSc 

We  may,  perhaps,  judge  a httle  of  the  future  by  the  past.  Since  the  end  of  the 
year  1865,  the  year  in  which  we  were  relieved  from  the  burden  of  civil  war,  we  added, 
up  to  the  end  of  1880,  58,600  miles;  in  1881  we  shall  surely  add  7,400  miles  more, 
making  66,000  miles  in  sixteen  years,  or  4,125  miles  per  year.  Is  it  too  much  to  assume 
that  in  the  next  sixteen  years  we  shall  need  50  per  cent,  more  each  year — say  6,250  per 
year?  This  would  practically  amount  to  doubling  our  service,  as  it  is  substantially  at 
this  date,  Oct.  I,  1881,  to  wit,  100,000  miles,  by  adding  thereto  100,000  miles  in  sixteen 
years.  The  previous  computation  is  based  on  117,500  miles. 

At  $35,000  per  mile,  the  capital  needed  would  be  $3,500,000,000.  At  $2  per  day, 
the  force  employed  would  be  350,000  in  number. 

It  would  therefore  appear  by  this  very  safe  computation  that  two-thirds  the  propor- 
tionate standing  army  which  we  should  need,  if  we  prepared  for  war  after  the  manner 
of  European  nations,  will  suffice  for  this  work. 

This  is  not  the  place  to  discuss  the  influence  of  this  nation  upon  the  condition  of 
Europe.  This  subject  has  been  treated  in  a most  able  manner  by  Prof.  Von  Holst,  but 
let  it  be  remembered  that  long  before  the  sixteen  years  have  elapsed  in  which  this 
work  may  be  done,  qur  national  debt  will  have  been  fully  paid,  even  if  a large  measure 
of  reduction  should  at  once  be  made  on  our  present  heavy  taxes,  and  it  may  then  be 
possible  CO  have  some  faint  conception  of  the  influence  of  this  country  at  the  beginning 
of  the  next  century. 

While  we  have  thus  set  up  the  State  of  Massachusetts  as  the  standard  of  a State 
fairly  served,  it  is  by  no  means  intended  to  cite  her  course  in  railway  legislation  as  an 
example  to  be  followed. 

It  is  true  that  she  has  enjoyed  the  benefit  of  a general  railway  act  for  several 
years,  and  that  through  her  Board  of  Railroad  Commissioners  she  has  secured  publicity 
of  accounts  on  a uniform  system,  and  also  such  other  methods  of  making  pubhc  all 
alleged  abuses  as  to  have  substantially  suppressed  the  pubhc  agitation  for  meddlesome 
statutes  for  the  regulation  of  the  service  by  law.  But  in  other  ways  her  course  has, 
perhaps,  been  an  example  of  all  that  might  be  well  avoided. 

Enticed  by  the  success  in  granting  State  aid  to  the  Western  R.  R.,  now  a part  of 
the  Boston  & Albany  R.  R.,  by  stock  subscriptions,  and  to  the  Norwich  & Worcester 
R.  R.  by  bond  subscriptions,  she  has  been  betrayed  into  State  undertakings  fruitful  in 
corruption  and  of  little  use.  The  two  measures  of  aid  above  named  were  granted  be- 
fore investments  in  railroads  had  become  general,  and  it  is  not  to  be  doubted  that  they 
hastened  the  connection  of  Massachusetts  with  the  West  by  a few  years;  and  had  the 
State  then  given  its  full  power  and  influence  to  the  development  and  adequate  use  of 
its  one  great  line  to  the  West,  the  Boston  & Albany  R.  R.,  it  might  have  secured  the 
full  share  of  the  great  commerce  which  it  has  since  sought,  with  comparatively  little 
success,  at  the  cost  of  a State  debt  of  about  $20,000,000. 

Having  first  removed  all  inducement  for  the  development  of  the  traffic  of  the 
Boston  & Albany  R.  R.  by  a provision  that  if  its  managers  should  dare  to  work  it  effec- 
tively, and  should  thereby  earn  more  than  ten  per  cent. , the  property  of  the  corpora- 
tion should  be  taken  from  it  at  a valuation,  the  State  next  proceeded  to  try  to  establish 
two  competing  lines — one  by  the  construction  of  the  Hoosac  Tunnel,  through  which  a 
small  traffic  is  now  in  operation,  the  avails  of  which  are  insufficient  to  keep  the  tunnel 


By  Edward  Atkinson. 


41 


in  repair  ; the  other  by  loans  to  what  was  known  as  the  Hartford  & Erie  R.  R.,  whose 
history  was  one  of  continuous  fraud  and  corruption,  until,  by  foreclosure,  it  came  into 
the  possession  of  the  New  York  & New  England  R.  R.  corporation,  by  whom  it  is 
being  completed. 

The  result  of  the  restrictions  upon  the  traffic  of  the  Boston  & Albany  R.  R.  has 
been  to  make  that  road  the  single  example  among  all  those  which  form  a part  of  the 
through  lines  to  the  West,  whose  traffic  has  remained  almost  stationary  for  several 
years,  while  its  net  receipts  from  freight  absolutely  diminished. 


The  tons  moved  on  this  hne  in  1869  were 1,613,940 

in  1873  2,884,520 

in  1879  2,738,090 


The  charge  per  ton  per  mile  was  reduced,  between  1869  and  1879,  more  than  50  per 
cent.,  but  the  earnings  also  decreased  7 per  cent.,  being  in  that  respect  singular  as 
compared  to  other  sections  of  the  great  through  lines. 

The  State  has  suffered,  both  in  its  traffic  and  in  its  taxes,  from  the  lack  of  develop- 
ment and  efficiency  in  this  line,  which  might,  perhaps,  have  made  a gain  in  its  traffic 
equal  to  that  of  the  New  York  Central,  with  which  it  connects,  if  it  had  been  consoli- 
dated with  it. 

The  result  of  the  State  attempt  to  force  the  construction  of  competing  lines  by 
State  interference  and  aid  has  therefore  been  that  the  amount  of  the  annual  tax  which 
the  people  of  the  State  now  pay  upon  the  debt  incurred  would  more  than  pay  the  cost 
of  moving  all  the  flour  and  a considerable  part  of  the  wheat  consumed  by  the 
whole  population  of  the  State  in  each  year,  from  Chicago  to  Boston,  a distance  of  one 
thousand  miles,  while  at  the  same  time  it  has  crippled  its  principal  line,  in  which  it 
had  a large  stock  interest,  and  which  might  have  been  made  adequate  to  do  five  times 
its  present  traffic  by  an  expenditure  of  half  the  cost  of  the  Hoosac  Tunnel. 

In  view  of  the  fact  that  the  principal  argument  used  by  those  who  enticed  the 
State  to  aid  in  the  construction  of  the  Hoosac  Tunnel  and  the  Hartford  & Erie  R.  R. 
was  in  order  that  the  people  of  Massachusetts  might  have  cheap  bread,  it  is  a singular 
commentary  that  the  result  has  thus  far  been  to  remove  the  wheat  flelds  of  the  West 
one  thousand  miles  further  away,  inasmuch  as  the  tax  now  required  to  pay  the  inter- 
est only  on  the  Hoosac  Tunnel  debt  amounts  to  the  cost  of  moving  one  barrel  of  flour 
for  every  man,  woman  and  child  in  the  State  more  than  one  thousand  miles. 

While  we  in  Massachusetts  have  thus  blundered  on  our  way  for  forty  years,  until 
we  have  secured,  in  spite  of  our  blunders,  a fairly  adequate  railway  service,  there  are 
yet  many  cross-roads  needed  ; and,  even  if  our  sister  States  do  their  utmost  to  reach 
our  standard,  it  may  yet  happen  that  even  at  the  end  of  the  next  sixteen  years  ou:^ 
old  Commonwealth  will  still  maintain  her  place  at  the  head  of  the  class.  r- 

Had  the  constant  occupation  of  a busy  life  permitted,  the  writer  would  have  been 
glad  to  have  condensed  the  original  article  on  The  Railroad  and  the  Farmer,  which  was 
prepared  for  the  flrst  number  of  this  Journal,  prior  to  its  republication  in  the  second 
number. 

He  had  also  hoped  that  the  large  circulation  which  the  first  number  attained,  and 
the  wide  attention  with  which  his  article  has  been  honored,  might  have  called  forth  a 
reply  from  the  advocates  of  State  or  National  regulation  of  the  railway  service,  which 
would  have  served  to  call  attention  to  any  errors  into  which  he  may  have  fallen  ; but 
the  replies,  so  far  as  he  has  seen  them  (including  the  article  in  this  number  by  the 
President  of  what  is  called  the  Anti-Monopoly  League),  have  been  of  so  indefinite  a 
character  that,  while  at  the  first  reading  they  seemed  to  be  of  some  importance,  on  a 
careful  consideration  no  substance  could  be  found  in  them  to  which  a rejoinder  can  be 
made.  Edward  Atkinson. 

Brookline,  JMass.,  Oct.  1,  1881. 


THE  RAILROAD  AND  THE  FARMER. 


NUMBER  TWO. 


BY  HON.  EDWARD  ATKINSON, 

Brookline,  Mass. 


Soon  after  the  publication  of  the  first  article  by  the  writer  upon  the 
“ Railroad  and  the  Farmer,”  in  the  Journal  of  the  American  Agricultural  As- 
sociation, it  was  suggested  by  several  correspondents  that  an  article  ought  to 
be  written  which  would  show  in  a special  way  the  effect  of  the  consolidation 
and  of  the  extension  of  railways,  upon  the  prices  of  farm  lands  and  pro- 
ducts, and  upon  the  wages  of  farm  laborers.  Of  course  such  questions  open 
to  view  an  amount  of  investigation  of  the  greatest  importance,  but  entirely 
beyond  the  capacity  of  one  who  can  only  give  a few  leisure  hours  to  work  of 
this  sort.  ^ 

Every  one  is  conversant  with  the  general  fact  that  the  extension  of  the 
railway  system  gives  value  to  otherwise  worthless  land,  and  that  the  price  of 
occupied  land  steadily  advances  with  the  consolidation  of  railroad  lines,  and 
more  effective  service  which  follows  therefrom.  But  it  is  often  necessary  to 
bring  general  facts  into  the  form  of  specific  statements  before  they  can  be 
completely  grasped. 

In  the  present  article,  which  will  consist  mainly  of  the  compilation  of 
answers  to  questions  put  by  circular  with  a view  to  bringing  out  the  salient 
points  in  this  matter,  we  may  begin  with  a detailed  statement  of  the  utmost 
interest  regarding  the  changes  which  have  affected  agriculture  in  the  west- 
ern part  of  the  State  of  New  York,  formerly  the  very  center  of  the  wheat 
cultivation  of  the  United  States. 

It  may  be  remembered  that  in  the  former  treatment  of  this  question,  ref- 
erence was  made  to  the  influence  which  the  American  railroad  had  exerted 
upon  rents,  and  consequently  upon  the  land  tenure  of  Great  Britain,  and  to 
the  changes  which  must  yet  be  made  in  order  that  the  agriculture  of  Great  Brit- 
ain may  be  adjusted  to  the  new  conditions  brought  into  effect  by  the  Ameri- 


The  Eailroad  and  the  Farmer. 


43 


can  railroad  and  the  steamship.  It  was  held  that  under  our  system  of  land  ten- 
ure, free  from  the  restrictions  of  settlements  and  entails,  not  only  had  Western 
competition  failed  to  decrease  the  value  of  well  situated  farm  lands  in  the 
Eastern  section  of  this  country,  but  that  when  the  people  of  such  districts 
were  relieved  from  the  necessity  of  “ breading  themselves  ” (as  it  is  termed 
in  the  South)  they  quickly  found  more  profitable  occupation  for  their  land 
and  labor,  being  enabled  to  do  so  by  their  freedom  from  the  restriction  of 
leases  from  the  burthen  of  rents,  tithes  and  settlements,  and  their  consequent 
ability  to  deal  with  their  land  as  they  may  deal  with  any  other  tool. 

Before  giving  the  interesting  and  valuable  statement  which  has  been  fur- 
nished by  Mr.  P.  C.  Reynolds,  Editor  of  the  Rural  Home^  attention  should 
be  called  to  the  very  rapid  changes  which  are  now  occurring,  in  the  distri- 
bution of  land  in  all  parts  of  the  United  States  ; and  to  that  end  reference 
may  be  made  to  the  following  table  giving  the  statistics  of  the  number  and 
sizes  of  farms  in  the  United  States — lately  furnished  by  the  Census  Depart- 
ment : 


Statistics  of  the  number  and  size  of  Farms,  and  of  the  tenure  thereof,  in  certain 
States  and  Territories  at  the  Census  of  1880. 


Table  I.— GROSS  NUMBER  OF  FARMS, 


States. 

1880. 

1870. 

1860. 

1860. 

Alabama 

13.5,864 

67,382 

55,128 

41,964 

Arkansas 

94,433 

49,424 

39,004 

17,758 

California . . 

35,934 

23,724 

18,716 

872 

Connecticut  

30,598 

25,508 

25,180 

22,446 

Dakota  

17,435 

1,720 

123 

Delaware 

8,749 

7,615 

6,658 

6,0^ 

Florida 

23,438 

10,241 

6,568 

4,304 

Georgia 

138,626 

69,956 

62,003 

51,759 

Illinois 

255,741 

202,803 

143,310 

76,208 

Indiana 

194,013 

161,289 

131,826 

93,896 

Iowa 

185,351 

116,292 

61,163 

14,806 

Kansas 

138,561 

38,202 

10,400 

Kentucky 

166,453 

118,422 

90,814 

74,777 

Louisiana  

48,292 

28,481 

17,328 

13,<«22 

Maine  

64,309 

59,804 

55,698 

46,760 

Maryland 

40,517 

27,000 

25,494 

21,860 

Michigan 

1.54,008 

98,786 

62,422 

34,089 

Minnesota 

92,386 

46,500 

18,181 

157 

Mississippi 

101,772 

68,023 

42,840 

33,960 

Missouri 

215,575 

148,328 

92,792 

54,458 

Nebraska 

63,387 

12,301 

2,789 

New  Hampshire 

32,181 

29,642 

30,501 

29,229 

New  Jersey  

34,307 

30,652 

27,646 

23,905 

New  Mexico 

5,053 

4,480 

5,086 

3,750 

New  York 

241,058 

216,2.53 

196,990 

170,621 

North  Carolina 

157,609 

93,565 

75,203 

56,963 

Ohio 

247,189 

195,953 

179,889 

143,807 

Oregon  

16,217 

7,587 

5,806 

1,164 

Pennsylvania 

213,542 

174,041 

156,357 

127.577 

Rhode  Island 

6,216 

5,368 

5,406 

5.885 

South  Carolina 

93,864 

51,889 

33.171 

29,967 

Utah 

9,452 

4,908 

3,635 

926 

Vermont 

35,522 

33,827 

31,556 

29,763 

Virginia  

118,517 

73,849 

92,605 

77,013 

Washington  

6,529 

3,127 

1,330 

West  Virginia  

62,674 

39,778 

Wisconsin  

134,322 

102,904 

69,270 

20,177 

41 


The  Railroad  and  the  Farmer. 


Table  n.-CLASSIFICATION  OF  GROSS  NUMBER  OF  FARMS  ACCORDING  TO  TENURE. 


Alabama 

Arkansas  

California 

Connecticut 

Dakota 

Delaware 

Florida 

Georgia 

Dlinois  

Indiana 

Iowa  

Kansas  

Kentucky 

Louisiana 

Maine  

Maryland  

Michigan 

Minnesota 

Mississippi 

Missouri  

Nebraska 

New  Hampshire, 

New  Jersey 

New  Mexico 

New  York 

North  Carolina  . , 

Ohio 

Oregon 

Pennsylvania  ... 
Rhode  Island  — 
South  Carolina . , 

Utah  

Vermont  

Virginia 

Washington 

West  Virginia..., 
Wisconsin 


States. 


Occupied  by 
Owner. 


Rented  for 
fixed  money 
rental. 


Rented  for 
shares 
of  produce. 


72,215 

65,245 

28,810 

27,472 

16,757 

5,041 

16,198 

76,451 

175,497 

147,963 

141,177 

115,910 

122,426 

31,286 

61,528 

27,978 

138,597 

83,933 

57,214 

156,703 

51,963 

29,566 

25,869 

4,645 

201,186 

104,887 

199,562 

13,938 

168,220 

4,980 


22,888 

9,916 

3,209 

1,920 

72 

511 

3,548 

18,557 

20,620 

8,582 

8,421 

4,438 

16,824 

6,669 

1,628 

3,878 

5,015 

1,251 

17,440 

19,843 

1,948 

1,237 

3,608 

22 

18,124 

8,644 

14,834 

741 

17,049 

989 


40,761 

19.272 
3,915 
1,206 

606 

3,197 

3,692 

43,618 

59,624 

37,468 

35,753 

18,213 

27,203 

10,337 

1,153 

8,661 

10,396 

7,202 

27,118 

39,029 

9,476 

1,378 

4,830 

386 

21,748 

44,078 

32,793 

1,538 

28.273 
247 


46,645 

9,019 

30,760 

83,531 

6,058 

50,673 

122,163 


21,974 

60 

2,164 

13,392 

209 

4,292 

3,719 


25,245 

373 

2,598 

21,594 

262 

7,709 

8,440 


In  connection  with  the  rapid  distribution  of  land  brought  into  view  by 
these  tables,  the  following  statements  cannot  fail  to  possess  great  interest. 
No.  I,  by  P.  C.  Reynolds  of  Rochester,  N.  Y.: 


FORTY  YEARS  OF  WESTERN  NEW  YORK  FARMING. 

You  ask  me  to  furnish  you  facts  regarding  the  condition  of  agriculture  in  Cen- 
tral and  Western  New  York.  1.  Before  the  days  of  railroads.  2.  When  the  rail 
roads  were  operated  in  a disjointed  way,  before  the  consolidation  of  the  New  York 
Central  line.  3.  During  the  period  that  has  elapsed  since  consolidation. 

In  compliance  with  your  request,  I would  say  that  my  acquaintance  with  West- 
ern New  York  agriculture  commenced  in  the  year  1836,  in  Ontario  County,  about 
four  miles  from  the  Erie  Canal,  at  Palmyra.  In  that  neighborhood  the  best  land 
was  then  worth  about  forty  dollars  an  acre.  Farther  from  the  canal  the  value  of 
land  was  less,  and  in  many  of  the  counties  remote  from  water  transportation,  land 
was  worth  but  from  five  to  fifteen  dollars  per  acre.  The  principal  products  in  some 
of  the  southern  counties  of  the  State  were  lumber  and  sliingles,  which  they  ex- 
changed with  the  farmers  of  ■grain-growing  sections  for  grain. 

In  the  section  extending  from  Lake  Ontario  on  the  north  to  from  15  to  20  miles 
south  of  the  Erie  Canal,  wheat  was  the  principal  product  grown  for  market,  and  about 


By  Hon.  Edward  Atkinson. 


45 


the  only  one  upon  which  the  farmer  could  depend  for  cash.  The  White  Flint  variety 
was  grown,  from  which  the  world-renowned  Genesee  flour  was  manufactured.  Some 
corn  was  grown  and  sold  to  the  distilleries  and  converted  into  whisky  ; some  bar- 
ley and  oats  were  sold,  and  butter,  cheese  and  eggs  were  bartered  at  the  stores  for 
goods,  but  upon  the  wheat  crop  the  farmer  relied  to  raise  the  mortgage  upon  his 
land.  For  wheat  he  could  obtain  pretty  near  the  prices  of  to-day,  and  in  some  in- 
stances, when  the  crop  was  short  in  this  or  foreign  countries,  the  price  was  high, 
because  the  area  devoted  to  wheat  was  quite  limited.  I remember  that  in  the 
Autumn  of  1836,  owing  to  a general  failure  of  the  wheat  crop,  and  an  urgent  for- 
eign  demand,  the  price  advanced  to  over  $2  a bushel,  but  a few  years  thereafter  it 
had  declined  to  75  cents  a bushel,  and  remained  quite  low  for  several  years.  At 
this  time  the  incomes  of  farmers  were  small,  their  labors  were  severe,  and  their 
luxuries  few.  The  implements  of  husbandry  were  few  and  simple,  and  much  of 
the  labor  now  performed  by  machinery  was  done  by  human  muscles. 

In  the  days  of  which  I have  written  farmers  were  skimming  off  the  cream  of 
the  soil,  were  using  the  accumulated  fertility  of  centuries,  were  exhausting  the  vir- 
gin soil,  and  large  yields  of  wheat  and  other  cereals  were  considered  pretty  certain. 
I shall  compare  the  products  of  that  period  with  those  of  later  periods,  when  the 
vegetable  mold  deposited  by  the  falling  forest  leaves  of  centuries  was  nearly  ex- 
hausted, and  when  a considerable  proportion  of  the  farmers  claimed  that  the  soil 
was  so  exhausted  that  it  was  useless  to  undertake  to  compete  with  the  products 
of  the  immense  and  fertile  West. 

The  wages  of  farm  laborers  were  low,  from  $8  to  $12  a month  for  seven  or 
eight  months  and  board,  but  few  being  employed  the  year  round.  The  wages  of 
day  laborers  were  from  40  cents  to  50  cents  a day  and  board,  in  ordinary  labor,  75 
cents  a day  in  haying,  and  $1  to  $1.50  in  harvest. 

In  recalling  the  condition  of  farming  in  those  days  when  the  canal  af- 
forded the  only  means  of  transportation,  I have  been  much  impressed  with 
the  fact  that  the  difference  in  the  market  prices  of  cereals  between  Rochester  and 
New  York  City  was  much  greater  then  than  now,  when  a large  proportion  of  the 
freight  is  transported  by  railroad.  Looking  over  an  old  file  of  the  Genesee  Farmer^ 
published  in  Rochester  in  1835,  I find  the  following  prices  paid  in  Rochester  and 
New  York  : 


Products.  Rochester.  New  York. 

Wheat,  per  bushel, $0.75  $1.04  @ $1.06 

Rye,  “ “ 0.50  0.65  @ 0.66 

Oats,  “ ‘ 0.30  0.40  @ 0.41 

Corn,  “ “ 0.50  0.62  @ 0.66 

Barley,  “ “ 0.50  0.62  @ 0.64 

From  the  market  reports  in  a late  number  of  the  American  Rural  Home,  I find 
the  following  prices  prevailing  in  Rochester  and  New  York  : 

Products.  Rochester.  New  York. 

Wheat,  per  bushel $1.38  @ $1.50  $1.39  @ $1,523^ 

Rye,  “ “ 0.95  @ 1.05  1.02  @ 1.07 

Corn,  “ ' » 0.78  @ 0.80  0.71  0.74 

Oats,  “ 0.50  @ 0.53  0.50  @ 0.56 

Barley,  “ “ 0.95  @ 1.10  1.00  1.10 


By  these  tables  we  perceive  that,  whereas,  when  our  only  means  of  transporta- 
tion to  seaboard  was  by  canal,  wheat  was  from  25  cents  to  30  cents  a bushel  higher 


46 


The  Railroad  and  the  Farmer. 


in  New  York  than  in  Rochester,  the  difference  now  is  only  about  2%  cents  a 
bushel,  and  other  cereals  in  similar  ratios.  I have  but  one  way  of  explaining  these 
facts,  and  that  may  show  that  what  our  farmers  have  considered  one  of  their 
greatest  grievances  may  have  its  compensations.  Rochester  millers  obtain  but  a 
portion  of  the  grain  they  grind  from  the  surrounding  farmers.  They  purchase 
large  quantities  of  wheat  and  corn  from  the  West,  and  the  price  they  pay  our  farm- 
ers is  governed  by  what  Western  grain  costs  them  delivered  here.  The  consoli- 
dated railroads  will  carry  grain  from  Chicago  to  New  York  for  about  the  same 
rates  that  they  will  charge  from  Chicago  to  Rochester,  so  that  our  millers  are 
obliged  to  pay  about  the  New  York  prices  for  Western  grain,  and  they  pay  our 
farmers  the  same  prices  for  theirs.  Were  rates  of  transportation  from  Chicago  to 
Rochester,  and  from  Chicago  to  New  York,  in  proportion  to  distances,  our  farmers 
would  receive  much  less  than  New  York  prices  for  their  products. 

During  the  period  when  farmers  were  devoting  so  much  of  their  land  to  wheat, 
which  was  shipped  to  the  towns  and  cities  or  exported,  they  were  exhausting  the 
soil  of  its  most  valuable  elements  of  plant-food,  and  in  consequence  its  productive 
capacity  steadily  decreased.  The  yields  became  less  and  less,  and  the  prospect  was 
discouraging.  The  appearance  of  the  midge  in  the  wheat  somewhere  about  the 
year  1845  taught  the  farmers  that  it  was  unwise  to  devote  so  much  of  their  land, 
their  labor  and  capital  to  one  crop  that  had  become  precarious,  sometimes  unprofit- 
able, and  determined  them  to  pursue  a more  varied  husbandry.  These  difficulties 
and  failures,  together  with  the  growing  competition  of  the  West,  also  caused  the 
farmers  to  pause  and  think,  and  it  is  always  a favorable  omen  when  men  engaged 
in  any  kind  of  industrial  pursuits  begin  to  think.  They  reasoned  that,  whereas,  the 
West  has  cheap,  fertile  lands,  our  only  hope  in  competing  with  her  is  in  husbanding 
manure,  better  and  more  economical  tillage,  growing  larger  yields  per  acre,  and,  as 
far  as  possible,  selecting  those  products  in  which  she  could  not  compete  with  us. 

The  construction  of  the  Erie  Railroad  was  a great  benefit  to  the  farmers  of  the 
southern  tiers  of  counties,  affording,  as  it  did,  a ready  means  of  transporting  their 
products  to  the  seaboard.  Although  not  so  well  adapted  to  wheat  as  the  counties 
along  the  lakes,  they  were  well  adapted  to  barley  and  oats,  and  also  to  grazing,  and 
dairying  became  a leading  feature  of  their  husbandry. 

The  counties  along  what  is  now  the  New  York  Central  did  not,  at  first,  realize 
the  full  benefits  of  the  railroad,  because  it  belonged  to  several  companies,  any  one 
of  which  could  alter  at  pleasure  its  rates  of  transportation,  and  shippers  of  perish- 
able products  could  not  depend  upon  their  being  transmitted  without  delay  to  their 
destination;  but  the  consolidation  of  the  different  companies  has  corrected  that 
evil  in  a great  measure. 

Farmers  began  to  devote  more  of  their  land  to  other  crops  than  wheat.  They 
grew  larger  areas  of  corn,  not  to  sell  in  market,  but  to  feed  out  on  the  farm,  return- 
ing a larger  proportion  of  its  plant  food  to  the  soil  to  restore  its  fertility.  The 
fattened  stock  could  be  readily  transported,  when  in  the  best  condition,  over  the 
railroads  to  the  seaboard  cities,  the  farmer  considering  that  he  made  a good  thing 
if  he  obtained  as  much  for  his  grain,  hay,  stalks  and  straw,  in  the  form  of  mutton 
or  beef,  as  they  would  have  brought  in  their  crude  state,  leaving  the  manure  to 
-compensate  him  for  the  trouble  of  feeding.  Not  infrequently,  skillful  feeders 
make  a fair  percentage  on  the  stock  they  buy  to  feed,  as  well  as  disposing  of  their 
products  in  that  way. 

Beans  have  become  quite  an  important  crop  with  many  farmers  in  Western 
New  York.  In  some  sections  this  legume  occupies  larger  areas  than  com,  taking  its 
place  partially  in  the  regular  rotation.  I have  visited  farms  during  the  past 


r 


s were  realized,  som« 
fans  this  year,  a greatej 
als. 

er  the  close  of  the  war  olthe 
extension  of  railroads  in  the  West,  large  areas  of  f^ 
vation,  the  products  of  which,  owing  to  reduced 
placed  in  the  seaboard  cities  at  low  rates,  many  of  oil! 
were  apprehensive  that  they  would  be  vnable  to  gro\^ 
them.  They  came  to  the  conclusion  th^t  they  must  do^ 
must  either,  by  means  of  improved  cu  ture  reduce  the  cl 
products,  or  they  must  endeavor  to  grov  such  crops  as  woul7 
petition  with  the  products  of  the  West.  The  result  is,  they  ar^ 
are  improving  and  cheapening  their  mediods  of  culture,  substiti!^ 
machines  for  muscular  force;  underdraiuing  their  wet  lands;  cultivJ 
more  thoroughly;  adopting  a judicious  rotation  of  crops;  making  ^ 
possible  on  the  farm,  and  bringing  back  irom  the  towns  and  cities  som^ 
gen,  phosphorus  and  potash  carried  frojai  thb  land  in  cereals,  legumes^ 
stock;  giving  more  attention  to  the  nroffeingS^nd  selection  of  seeds,  and  t3 
ing  of  stock;  in  fact,  farming  more  ih  ac^brdance  with  sound  sense  ai^ 
science;  and,  as  a result,  they  are  ablejto  grbw  with  profit,  those  products 
come  into  competition  with  Western  products,  such  as  wheat,  corn,  barley 
oats.  They  are  able,  also,  by  means  o^  warm  stables  and  economical  feeding, 
fatten  profitably,  beeves,  sheep  and  s-syme. 

At  the  same  time  many  have  tun^otj  their  attention  to  the  growing  of  fruits, 
nursery  stock,  seeds,  market  garden  vegetables,  &c.,  in  many  instances  realizing 
much  larger  profits  than  would  have  been  possible  from  regular  farm  crops.  Straw- 
berries, raspberries,  cherries,  currants,  blackberries,  grapes,  plums,  peaches,  pears  and 
apples  are  grown  and  shipped  in  large  qn  antities  from  almost  every  prominent  station 
along  the  railroads  to  the  large  cities,  bringing  in  return  to  the  growers  incomes 
that  would  have  astonished  farmers  here  forty  years  ago.  I visited  in  1879  (a  non- 
bearing year  for  apples)  a farmer  owning  about  200  acres  of  land,  with  a little  over 
100  acres  in  fruit,  mainly  apples.  Abou:  half  of  his  trees  were  barren,  and  yet  he 
received  from  his  fruit  that  year  a gross  income  of  over  $17,000.  From  another 
orchard  of  eleven  acres,  there  were  sole  that  year  over  $5,^>00  worth  of  fruit.  A 
pear  orchard  of  ten  acres  has  produced  fruit  in  a single  year  thai.sold  for  $5,000. 
se  references  will  show  how  some  farmers  are  enabled  to  use  their  2,3p.d  in  such 


a way  realize  much  larger  profits  than  before  the  opening  of  Western  e^jmpe- 
^tion.  Ana  capacity  of  this  region  for  the  production  of  fruit  has  not'bt?- 

gun*t84jC^velopt/3.  It  ruight  be  incr^>afeed  a hundred  fold  if  the  demand  would 
warrant,  an^m^e  market  should  extend  as  rapidly  in  the  future  as  it  has  in  the 
past  few  years  it  "^>iiLwarrar]t  extensions  of  orchards  quite  as  fast  as  the  trees 
can  be  grown,  planted,  and>hr^ght  tnto  bearing  condition.  The  facilities  for 
canning,  evaporating,  and  otherwi^^hserving,  are  so  rapidly  increasing  that  we 
may  confidently  expect  that  all  tlm^uit*tliat  cannot  be  consumed  and  exported  in 
their  fresh  state  may  be  preserve<^^Aj^ansported  to  remote  markets. 

But  the  mere  assertions  of  one'  given  considerable  attention  to  the  sub- 

ject will  not  satisfy  the  public,  s^T'lfe^'had  recourse  to  statistics  to  see  whetbei: ' 
the  farms  of  Western  New  Yqi|c^^^jbbcoming  exhausted,  or  roo.r£'  productive. 
The  statistics  of  the  census  gat^^|:^^^»hough  evidently  imperfect,  a;te  the  most 

' 


Liviijgston,  Madison,  Monroe,  Niagara,  un«. 
o,  Schuylj^r,  Seneca,  Steuben,  Tompkins,  Wayne, 
esented  in  tabular  form  the  values  of  farms,  ma- 
ve  stock,  &o,  and  yields  of  leading  products  in  the 
us  censuses: 


em’ts  and  Mach’y 
Products, 
ock. 


els 

[ishels 

Beans,  bushels 

s,  bushels 
ons 

1,  pounds 
ter,  lbs 
eese, lbs 
ilk,  gallons 

Value  of  Dairy  Products 

Value  of  Nursery  Products 

Value  of  Market  Garden  Products, 


1840. 


$595^8^ 


1860. 


<217,268,223 

$9,566,295 

$774,347 


^■'*’^fr;^i^i^,755,078 


$2:5ft7,636!^.’> 
■|l7,84'4  . 


1860. 


S327,505,215 

$12,511,128 

$2,323,791 

$44,730,705 

5,643,364 

10,667,731 

12,984,947 

3,350,178 

760,724 

10,527,237 

1,108,043 

4,602,729 

39,939,041 

14,638,952 


1870. 


$537,109,719 

$18,650,848 

$5,211,244 

$74,112,459 

9,341,543 

8,754,138 

17,284,602 

6,238,984 

710,700 

8,366,290 

1,958,725 

6,871,650 

38,314,447 

5,428,161 

44,906,492 

$19,9^,619.83 

$667’396 


1880. 


9,844,552 

14,746,673 

18,444,927 

6,768,121 


10,458,360 


COMMENTS  vfv'  <E  TABLE. 

The  cash  value  of  farms  was  not  given  in  the  census  of  1840,  and  I have  not  been 
able  to  obtain  that  of  1880.  Fron>;l850  to  1870  the  value  of  farms  considerably 
more  than  doubled.  I think  the  ii^preii^  tp  value  from  1870  to  1880  was  small. 
The  financial  revulsion  of  1873  caused  <\uit^  o-  decline  in  value,  and  since  the  return  of 
prosperity  ordinary  farms  have  ordy  ajbt»ut!^^.vered  what  was  lost  in  the  depression. 
Yet  one  fact  is  well  understood  by  and  other  holders  of  farm  mort- 

gages. While  during  the  flush  timeaj  irrai(||!^diately  following  the  rebellion,  farmers 
went  recklessly  Into  debt,  after  the  reyel^  1873  they  began  to  pay  their  debts 
and  soon  savings  banks  began  to  coriapl  nn  that  farm  mortgages  were  coming  in 
muphi  faster  than  they  were  going  out,  and,^^hey  were  troubled  to  find  secn^'  • 
vestments.' 

The  value  of  farm  implements  and  i^^hinery  nearly  doubled  'h-vweeri^^^^^  Jfid 
1870,  and  I have  no  doubt  that  there  hi  a great  incrpr.^e  dun^>^e  last  ten 

years.  Mowers  and  reapers  are  b*  < ord;  common,  and  gjany  have  adopted 

binders.  Drills,  with  fertilizer  attachm^j^ts,  improved  piows,  harrows  and  cultiva- 
tors, have  rapidly  multiplied.  ' ’ 

Although  the  value  of  orchard  prodv  dt^  u>n 
to  1870, 1 think  the  increase  during  tlu  1^- 
preceding  ten.  Our  bearing  year  for  aji 
jfpur  to  ten  times  that  of  the  odd  or  i»p[ 
for  tlie  wm-bearing  year,  and  consequey-Tjj| 

We  ahe  able  to  show  the  value  of  a\ 


lea  nearly  nine  times  from  1840 
^urs  must  have  equaled  that  of  the 
le  even  one,  when  the  yield  is  from 
ng  year.  The  census  gives  returns 
lowing  is  below  the  average, 
at  two  decades  only,  but  that  shows 


